tmmonline.nz  |   landlords.co.nz        About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds

NZ's Financial Adviser News Centre

GR Logo
Register free for JLL Future Cities Wellington here Dismiss
Last Article Uploaded: Sunday, April 11th, 9:09AM

Mortgages

rss
Latest Headlines

ASB U-turn on investor new builds

ASB has backtracked on plans to impose LVR restrictions on new build investor loans. 

Thursday, February 18th 2021, 6:51AM 1 Comment

The bank has reversed its decision to reject new build loans above 60% LVR, following a backlash from investors and advisers.

ASB told TMM Online it "may not have got the balance quite right" on its lending criteria.

The lender announced the U-turn in a note to advisers yesterday evening. It will now lend to investors on new builds above 60% LVR, "effective immediately".

The big four bank will lend up to 85% LVR for new homes, with owner-occupiers and landlords alike needing a 15% deposit.

ASB's decision to limit new build investor loans had angered the investor community, with financing for new homes exempt from the Reserve Bank's freshly-tightened LVR restrictions.

Craig Sims, ASB's executive general manager for retail banking, told TMM Online that the initial decision to stop backing investor new builds above 60% LVR was partly a response to "continued high demand".

But he recognised the bank had gone too far. 

"We acknowledge that in trying to do the right thing for Kiwis, and for first home buyers in particular, we may not have got the balance quite right and we have made a move today [Feb 17] to enable lending of greater than 60% LVR for new build investment properties, under the RBNZ exemption criteria."

Sims said the bank had also tapped into the Reserve Bank's Funding for Lending Programme to provide discounted lending for "new, energy efficient homes", which would be available to owner-occupiers and investors.

Sims said further details on the discounted funding would be available in the next few months.

The big four banks and Kiwibank have announced they will continue to provide new build investor loans above 60% LVR.

Tags: ASB investor lending LVR

« ASB shut down new build investor loansWhat's the best mortgage strategy? »

Special Offers

Comments from our readers

On 19 February 2021 at 12:12 pm Amused said:
ASB told TMM Online it "may not have got the balance quite right" on its lending criteria.

It's not the only thing that ASB isn't getting right at the moment. Hey ASB , how about restoring some of that excellent service that you used to deliver years ago to mortgage advisers and our customers.

ASB’s slogan "one step ahead" in terms of service I think most mortgage advisers would agree should be changed to "two steps behind" at the moment.

Sign In to add your comment

 

print

Printable version  

print

Email to a friend
News Bites
Latest Comments
  • Are robots the future of advice?
    “Yeah/Nah another article talking financial advisers but really means to say financial planning... The bespoke needs of...”
    5 days ago by JPHale
  • [The Wrap] FSLAA isn't the only big change advisers need to be aware of
    “I watch with hope that FMA will decide to investigate potential and existing sharp practices that are nothing less than fraudulent,...”
    5 days ago by Chatterbox
  • Are robots the future of advice?
    “The majority of the 9,000 consumers surveyed globally said that they trust robots more than humans to help manage their personal...”
    6 days ago by All hat no cattle
  • Are robots the future of advice?
    “What a load of tripe - produced by someone with something to gain. The global experiment with RoboAdvice has demonstrated...”
    6 days ago by Pragmatic
  • Are robots the future of advice?
    “Of course Oracle would produce research supporting their products!! No surprise there. However, I doubt very much if serious...”
    6 days ago by dcwhyte
Subscribe Now

Mortgage Rates Newsletter

Daily Weekly

Previous News

MORE NEWS»

Most Commented On
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AIA 4.55 2.29 2.59 2.65
ANZ 4.44 2.89 3.25 3.39
ANZ Special - 2.29 2.69 2.79
ASB Bank 4.45 2.29 2.59 2.65
Basecorp Finance 5.49 - - -
Bluestone 3.49 3.34 2.99 3.34
BNZ - Classic - 2.29 2.59 2.79
BNZ - Mortgage One 5.15 - - -
BNZ - Rapid Repay 4.60 - - -
BNZ - Std, FlyBuys 4.55 2.89 3.19 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 3.50 3.50
Kiwibank - Offset 3.40 - - -
Kiwibank Special 3.40 2.35 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 2.79 2.79 3.15
SBS Bank Special - 2.29 2.29 2.65
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 2.29 2.59 2.79
The Co-operative Bank - Standard 4.40 2.79 3.09 3.29
TSB Bank 5.34 3.09 3.29 3.45
TSB Special 4.54 2.29 2.49 2.65
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 4.55 2.73 2.99 2.80

Last updated: 7 April 2021 10:22am

About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox
 
Site by Web Developer and eyelovedesign.com