Deposit criteria doubles: 40% now required
The country’s largest home lender ANZ says from now it will require investors to have 40% deposits.
This goes further than the recommendations of the Reserve Bank, which is moving to have 30% deposits for investors in place by March.
It comes as the housing market has absolutely taken off with prices having risen by 18.5% in the past 12 months.
The proposal from the RBNZ is to reinstall the restrictions exactly as they were when removed in May. This means 30% deposits for investors and 20% for owner-occupiers. Most major banks have already adopted these rules ahead of the planned March reintroduction.
But now ANZ has gone further – requiring a minimum 40% deposit for investments.
In the New Zealand market, ANZ is a very big player. It accounts for just under a third of the total mortgage lending.
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