Kiwibank already near target before rules kicked in
Its latest GDS shows that the percentage of its net home loan growth in mortgages with an LVR of more than 80% was 15% for the quarter.
The bank recorded mortgage growth of $234 million in the three months ended September, of which $34 million was to borrowers with a deposit of less than 20%. It takes Kiwibank’s total high-LVR lending to 18.77% of its loan book, slightly down on the previous quarter.
Under the restrictions that kicked in at the beginning of October, the bank can only lend 10% of its new loans to borrowers in that category.
Massey University banking expert Claire Matthews said she was not surprised by the result. “With the knowledge that the LVR regulations were coming, the banks had to move earlier to ensure they were ready for them. They can’t risk non-adherence.”
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