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Last Article Uploaded: Sunday, November 28th, 11:59AM

Mortgages

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Big banks say no to 40% investor deposits

The other three big banks will not follow ANZ in making investors raise a 40% deposit for a home loan, following the lender's controversial decision.

Monday, December 21st 2020, 8:32AM

Craig Sims

ANZ last week revealed it would no longer lend to investors above 60% LVR. 

The bank said there had been a record level of mortgage lending over the past two months, with a third of loans going to property investors. 

It said 40% deposits would "help bring balance to the housing market".

The lender has also asked the Reserve Bank to impose a 60% limit on investor loans. 

The nation's biggest bank looks to be an outlier in its treatment of investors, as the other members of the "big four" are not adjusting their settings.

ASB and BNZ are limiting investors to 70%, as the Reserve Bank signals plans to reintroduce LVR speed limits in March. 

ASB's executive general manager for retail banking, Craig Sims, said: "We believe a balanced and sustainable housing market is in the best interests of all New Zealanders, and we are committed to playing our part in helping first home buyers get onto the property ladder. As part of this, we made changes to our lending criteria last month, requiring a greater deposit from investors. We continue to monitor developments in the housing market and we regularly review our credit settings, and will make changes as appropriate."

A BNZ spokesman said there were "no plans to make any changes at this stage", with LVR limits "remaining at 70% for investors". 

Westpac said it has "no plans to change our deposit requirements for residential investors". A spokesman added: "We have taken a consistent and responsible approach to lending throughout the year, and did not change our lending criteria when the RBNZ removed its LVR "speed limit" restrictions in April."

Tags: ANZ ASB BNZ Lending property investment Westpac

« How will 40% deposit requirements affect the market?Is the housing market cooling off? »

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Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AIA 4.55 3.65 4.35 4.69
ANZ ▲4.79 ▲4.25 ▲4.95 ▲5.35
ANZ Blueprint to Build ▲2.03 - - -
ANZ Special - ▲3.65 ▲4.35 ▲4.75
ASB Back My Build 2.04 - - -
ASB Bank 4.45 3.65 4.35 4.69
Avanti Finance 4.55 - - -
Basecorp Finance 5.49 - - -
Bluestone 3.74 3.54 3.89 4.09
BNZ - Classic - ▲3.65 ▲4.35 ▲4.69
BNZ - Mortgage One 5.15 - - -
Lender Flt 1yr 2yr 3yr
BNZ - Rapid Repay ▲4.95 - - -
BNZ - Std, FlyBuys ▲4.95 ▲4.25 ▲4.95 ▲5.29
BNZ - TotalMoney ▲4.95 - - -
CFML Loans 5.15 - - -
China Construction Bank 4.49 4.70 4.80 4.95
China Construction Bank Special - 2.65 2.65 2.80
Credit Union Auckland 5.95 - - -
First Credit Union Special 5.85 3.59 4.09 -
Heartland Bank - Online 2.25 1.85 2.35 2.65
Heretaunga Building Society 5.25 4.00 4.60 -
HSBC Premier 4.49 2.19 2.45 2.69
Lender Flt 1yr 2yr 3yr
HSBC Premier LVR > 80% - - - -
HSBC Special - 2.25 - -
ICBC 4.15 ▲3.29 3.85 4.19
Kainga Ora 4.43 2.88 3.28 3.59
Kainga Ora - First Home Buyer Special - 2.25 - -
Kiwibank 4.05 4.34 5.00 5.34
Kiwibank - Offset 4.00 - - -
Kiwibank Special 4.05 3.49 4.15 4.49
Liberty 4.84 - - -
Nelson Building Society 4.95 3.99 4.59 -
Pepper Essential 4.79 - - -
Lender Flt 1yr 2yr 3yr
Resimac 3.39 3.54 3.89 4.09
SBS Bank 4.79 3.65 4.19 4.25
SBS Bank Special - 3.15 3.69 3.75
Select Home Loans 3.49 3.34 2.99 3.34
The Co-operative Bank - First Home Special - 3.29 - -
The Co-operative Bank - Owner Occ 4.55 3.49 4.15 4.49
The Co-operative Bank - Standard 4.55 3.99 4.65 4.99
TSB Bank 5.34 4.09 4.74 4.99
TSB Special 4.54 3.29 3.94 4.19
Unity 5.65 4.15 4.60 -
Wairarapa Building Society 4.99 3.55 3.89 -
Lender Flt 1yr 2yr 3yr
Westpac ▲5.09 4.25 4.95 5.29
Westpac - Offset ▲5.09 - - -
Westpac Special - 3.65 4.35 4.69
Median 4.67 3.59 4.27 4.49

Last updated: 26 November 2021 9:41am

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