ANZ too clamps down on low-deposit loans

ANZ has joined BNZ and Kiwibank in cutting back on low-deposit loans for houses.

Tuesday, November 23rd 2021, 10:12AM 1 Comment

It says owner-occupiers wanting to buy existing homes will not be accepted for new applications where the loan-to-value ratio (LVR) is greater than 80%.

The bank insists the move is only temporary.

Customers with existing home approvals or pre approvals are not affected, nor are new builds.

It follows the Reserve Bank (RBNZ) limiting all banks' ability to lend at low LVRs.

The RBNZ said only 10% of a bank's lending portfolio could be at high LVRs, meaning a few individuals who were favoured by the banks because of their assets or income could scrape through.

But the bank is now going further and blocking all new applications for existing homes by owner occupiers, though it is making an exception for new home-builds.

ANZ Managing Director for Personal Banking Ben Kelleher says the move is needed to help the bank meet the new rules, which came into effect on Nov 1.

“For those who may have been planning or in the process of applying and now won’t qualify, we encourage them to talk to us about other options,” Mr Kelleher said.

“It is very much business as usual for everyone else.”

Tags: ANZ

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Comments from our readers

On 23 November 2021 at 11:17 am Amused said:

Looking forward to when Mr Orr's tenure as Reserve Bank Governor comes to an end on 28th March 2023. Respectfully he has been an absolute disaster for New Zealanders when it comes to stoking house prices and limiting borrowers access to securing finance to purchase a house (especially first home buyers).

As a British politician once said famously - "in the name of God, go!"

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