ALL ARTICLES
DEC 15 2020
ALL ARTICLES

ANZ now requires 40% deposit for residential property investment loan

Posted by: Connie in Property Investing

ANZ has made a decision to decrease the LVR on Residential Investor Lending from 70% to 60%, effective today. We'll explain everything to do with this change and the impact on New Zealand housing marketing in this video. 

ANZ now requires 40% deposit from property investors

Here is the announcement from the ANZ:

"ANZ Bank NZ today announced it would require a 40% deposit from residential property investors as a step to bring balance to the housing market.

Effective immediately, investors will need equity of 40%, up from the current 30%, when borrowing to buy residential property. There are no changes to deposit requirements for other residential buyers, including first home owners.

ANZ Managing Director Personal Ben Kelleher said ANZ would also be recommending to the Reserve Bank of New Zealand (RBNZ) as part of the current consultation that loan-to-valuation ratios (LVR) be set at 60% for residential property investors, rather than the 70% that has been proposed.

“We’ve been closely monitoring the impact on residential property prices of historically low interest rates, reduced LVR requirements and existing issues with supply and demand,” Mr Kelleher said.

“Escalating property prices are putting home ownership out of reach for many Kiwis. The current settings favour property investors particularly over first home buyers, potentially locking a generation of New Zealanders out of home ownership.

“It’s in everyone’s interests for residential property prices to be sustainable long term, and for home ownership to be accessible to as many people as possible.

“As New Zealand’s largest home lender, decreasing the LVR on residential investor lending is one thing we can do to help bring balance to the residential property market.”


Thinking about buying another investment property?

If you’re planning to apply for a home loan to buy your next investment property, we’re more than happy to chat. Call us at 09 930 8999 for a chat with one of our mortgage advisors. At Prosperity Finance, we don’t have a one-size-fits-all solution for your home loan. We look at your case, understand your needs and situation then make a tailored solution for you.


More Articles:

Loan to value ratio (LVR) restrictions for investment property return to 70%

Using equity to buy an investment property: what might delay your loan pre-approval?

NZ Interest rates forecast for 2021 – Will interest rates stay low or back up?

NZ housing market forecast 2021: Will house prices keep increasing?


Disclaimer: The content in this article are provided for general situation purpose only. To the extent that any such information, opinions, views and recommendations constitute advice, they do not take into account any person’s particular financial situation or goals and, accordingly, do not constitute personalised financial advice. We therefore recommend that you seek advice from your adviser before taking any action.

Tags:

ANZ has made a decision to decrease the LVR on Residential Investor Lending from 70% to 60%, effective today. We'll explain everything to do with this change and the impact on New Zealand housing marketing in this video. 

ANZ now requires 40% deposit from property investors

Here is the announcement from the ANZ:

"ANZ Bank NZ today announced it would require a 40% deposit from residential property investors as a step to bring balance to the housing market.

Effective immediately, investors will need equity of 40%, up from the current 30%, when borrowing to buy residential property. There are no changes to deposit requirements for other residential buyers, including first home owners.

ANZ Managing Director Personal Ben Kelleher said ANZ would also be recommending to the Reserve Bank of New Zealand (RBNZ) as part of the current consultation that loan-to-valuation ratios (LVR) be set at 60% for residential property investors, rather than the 70% that has been proposed.

“We’ve been closely monitoring the impact on residential property prices of historically low interest rates, reduced LVR requirements and existing issues with supply and demand,” Mr Kelleher said.

“Escalating property prices are putting home ownership out of reach for many Kiwis. The current settings favour property investors particularly over first home buyers, potentially locking a generation of New Zealanders out of home ownership.

“It’s in everyone’s interests for residential property prices to be sustainable long term, and for home ownership to be accessible to as many people as possible.

“As New Zealand’s largest home lender, decreasing the LVR on residential investor lending is one thing we can do to help bring balance to the residential property market.”


Thinking about buying another investment property?

If you’re planning to apply for a home loan to buy your next investment property, we’re more than happy to chat. Call us at 09 930 8999 for a chat with one of our mortgage advisors. At Prosperity Finance, we don’t have a one-size-fits-all solution for your home loan. We look at your case, understand your needs and situation then make a tailored solution for you.


More Articles:

Loan to value ratio (LVR) restrictions for investment property return to 70%

Using equity to buy an investment property: what might delay your loan pre-approval?

NZ Interest rates forecast for 2021 – Will interest rates stay low or back up?

NZ housing market forecast 2021: Will house prices keep increasing?


Disclaimer: The content in this article are provided for general situation purpose only. To the extent that any such information, opinions, views and recommendations constitute advice, they do not take into account any person’s particular financial situation or goals and, accordingly, do not constitute personalised financial advice. We therefore recommend that you seek advice from your adviser before taking any action.

Tags: