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ANZ gets tough on investors

ANZ New Zealand has lifted its deposit requirement for residential property investors to 40%, marking a major change in the lending market.

Tuesday, December 15th 2020, 8:52AM

The nation's biggest bank unveiled the decision this morning. Effective immediately, residential investors will not be able to borrow more than 60% loan to value.

It comes as the Reserve Bank moves to reinstate LVR limits that restrict lending above 70%. 

ANZ's move goes one step further, and marks a significant clampdown on landlords and investors following a record surge in the housing market. 

There are no other changes for ANZ mortgage customers, including owner-occupiers and first home buyers. 

In an email to advisers, ANZ's head of mortgage adviser distribution Baden Martin said: "Over the last two months we’ve seen record mortgage lending. A fifth of this has gone to first home buyers and about a third has gone to residential property investors. If that trend continues we’re concerned that the current settings could lock many first home buyers out of home ownership."

"As New Zealand’s largest lender, requiring a 40% deposit from residential property investors is a step we can take right now to help bring balance to the housing market. It’s in everyone’s interests for residential property prices to be sustainable long term."

In an extraordinary move, ANZ managing director of personal banking Ben Kelleher said he would recommend to the Reserve Bank that LVRs be set at 60% for investors.

The developments mark a major change in the lending market, with banks under pressure to keep a lid on investor lending amid a rise in high LVR investor lending and investor activity.

Kelleher said the bank made the decision as current conditions "favour property investors", "potentially locking a generation of New Zealanders out of homeownership".

He said the bank had monitored the impact of low rates, reduced LVRs and "existing issues with supply and demand". 

Kelleher added: "It’s in everyone’s interests for residential property prices to be sustainable long-term, and for homeownership to be accessible to as many people as possible.

"As New Zealand’s largest home lender, decreasing the LVR on residential investor lending is one thing we can do to help bring balance to the residential property market," he added.

Tags: ANZ housing market housing shortage Lending LVR property investment

« Housing crisis a supply issueAdvisers react to ANZ's LVR decision »

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Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AIA 4.55 2.55 2.69 2.79
ANZ 4.44 ▼2.89 3.25 3.39
ANZ Special - ▼2.29 2.69 2.79
ASB Bank 4.45 2.49 2.59 2.65
Bluestone 3.49 3.34 2.99 3.34
BNZ - Classic - 2.49 2.69 2.79
BNZ - Mortgage One 5.15 - - -
BNZ - Rapid Repay 4.60 - - -
BNZ - Std, FlyBuys 4.55 3.09 3.29 3.39
BNZ - TotalMoney 4.55 - - -
CFML Loans 4.95 - - -
Lender Flt 1yr 2yr 3yr
China Construction Bank 4.49 4.70 4.80 4.95
China Construction Bank Special - 2.65 2.65 2.80
Credit Union Auckland 5.45 - - -
Credit Union Baywide 5.65 3.95 3.85 -
Credit Union South 5.65 3.95 3.85 -
First Credit Union Special 5.85 2.95 3.45 -
Heartland 3.95 2.89 2.97 3.39
Heartland Bank - Online 2.50 1.99 2.35 2.45
Heretaunga Building Society 4.99 3.50 3.40 -
HSBC Premier 4.49 2.25 2.35 2.65
HSBC Premier LVR > 80% - - - -
Lender Flt 1yr 2yr 3yr
HSBC Special - - - -
ICBC 3.69 2.45 2.45 2.65
Kainga Ora 4.43 2.93 3.07 3.24
Kainga Ora - First Home Buyer Special - 2.25 - -
Kiwibank 3.40 3.30 3.50 3.50
Kiwibank - Offset 3.40 - - -
Kiwibank Special 3.40 2.55 2.65 2.65
Liberty 5.69 - - -
Nelson Building Society 4.95 ▼3.20 ▼3.24 -
Pepper Essential 4.79 - - -
Resimac 3.39 3.35 2.99 3.35
Lender Flt 1yr 2yr 3yr
SBS Bank 4.54 2.99 3.09 3.15
SBS Bank Special - 2.49 2.59 2.65
Select Home Loans 3.49 3.34 2.99 3.34
The Co-operative Bank - First Home Special - - - -
The Co-operative Bank - Owner Occ 4.40 2.49 2.69 2.79
The Co-operative Bank - Standard 4.40 2.99 3.19 3.29
TSB Bank 5.34 3.29 3.29 3.59
TSB Special 4.54 2.49 2.49 2.79
Wairarapa Building Society 4.99 3.55 3.49 -
Westpac 4.59 3.09 3.29 3.39
Westpac - Offset 4.59 - - -
Lender Flt 1yr 2yr 3yr
Westpac Special - 2.29 2.69 2.79
Median 4.54 2.93 2.99 2.97

Last updated: 20 January 2021 7:50am

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