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ASB the latest to clamp down on investors

ASB is the latest big four lender to introduce strict LVR requirements for investors, following ANZ and BNZ in tightening the rules.

Friday, February 5th 2021, 5:49PM 1 Comment

New borrowers looking for an investment property loan at ASB will need a 40% deposit, bringing the bank in line with its rivals.

It comes amid a clampdown on investors, with many blaming landlords for fuelling the unprecedented rise in house prices since the beginning of the pandemic.

Chief executive Vittoria Shortt said: “We’re concerned the continued high levels of investor demand are unsustainable so effective immediately we are increasing the deposit required from investors to 40% from the current 30%.”

The moves deal another blow to investor clients, with rising political pressure on the property investor community. 

“We are very focused on being a prudent and responsible lender. We all have to play our part and this decision to immediately increase the deposit required from investors is about ensuring a balanced and sustainable housing market which is in the best interests of all New Zealanders,” Shortt added.

According to ASB, pre-approvals already in place are unaffected. The change will apply to home loan applications and any top-ups which have not yet been conditionally or fully approved.

Tags: ASB investor lending Lending property investment

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Comments from our readers

On 8 February 2021 at 11:06 am Amused said:
“According to ASB, pre-approvals already in place are unaffected. The change will apply to home loan applications and any top-ups which have not yet been conditionally or fully approved”.

If I am reading this announcement correctly it looks like those mortgage brokers and their customers who have been patiently waiting to have their applications approved at ASB for the last 10+ days are now going to be told tough luck! I have never heard of a lender in 18 years not honouring existing applications already in their assessment pipeline. Banks have always agreed to honour applications previously submitted under the old policy before they change their assessment criteria.

ASB’s increasingly bad assessment times, lack of communication about policy changes and apparent indifference now to losing business to competitor banks does not bode well for them as a lender going forward. Such a shame because they used to be such a great bank to deal with.

Respectfully a lot of the blame for the current situation at ASB has to lay with the former Head of Third Party who departed last year.

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Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AIA 4.55 2.25 2.59 2.89
ANZ 4.44 2.85 3.19 3.49
ANZ Special - 2.25 2.59 2.89
ASB Bank 4.45 2.25 2.59 2.89
Basecorp Finance 5.49 - - -
Bluestone 3.49 3.34 2.99 3.34
BNZ - Classic - ▼2.25 ▼2.55 2.79
BNZ - Mortgage One 5.15 - - -
BNZ - Rapid Repay 4.60 - - -
BNZ - Std, FlyBuys 4.55 ▼2.85 ▼3.15 3.39
BNZ - TotalMoney 4.55 - - -
Lender Flt 1yr 2yr 3yr
CFML Loans 4.95 - - -
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 Bank - Online 2.50 1.99 2.35 2.45
Heretaunga Building Society 4.99 3.40 3.50 -
HSBC Premier 4.49 2.25 2.35 2.65
HSBC Premier LVR > 80% - - - -
Lender Flt 1yr 2yr 3yr
HSBC Special - 2.25 - -
ICBC 3.69 2.25 2.35 2.65
Kainga Ora 4.43 2.67 2.97 3.13
Kainga Ora - First Home Buyer Special - 2.25 - -
Kiwibank 3.40 3.20 ▼3.40 ▲3.64
Kiwibank - Offset 3.40 - - -
Kiwibank Special 3.40 2.35 ▼2.55 ▲2.79
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 2.79 2.99 3.29
SBS Bank Special - 2.29 2.49 2.79
Select Home Loans 3.49 3.34 2.99 3.34
The Co-operative Bank - First Home Special - 2.09 - -
The Co-operative Bank - Owner Occ 4.40 ▼2.25 2.59 2.79
The Co-operative Bank - Standard 4.40 ▼2.75 3.09 3.29
TSB Bank 5.34 3.05 3.29 ▲3.59
TSB Special 4.54 2.25 2.49 ▲2.79
Wairarapa Building Society 4.99 3.55 3.49 -
Westpac 4.59 ▼2.85 3.19 3.49
Westpac - Offset 4.59 - - -
Lender Flt 1yr 2yr 3yr
Westpac Special - ▼2.25 2.59 2.89
Median 4.55 2.71 2.99 2.89

Last updated: 6 May 2021 10:51am

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