Home loans, education hit by changes

The new year brings changes for New Zealanders. Here are six things that took effect on January 1, and how they might affect you.

Loan-to-value restrictions

It is now a little easier to get a home loan.

Banks will now be able to lend 20 per cent of their new loans to owner-occupiers who have a deposit of less than 20 per cent of a purchase price. That is up from 15 per cent of new lending.

They’ll still only be allowed to lend 5 per cent of their new loans to lowdeposit investors, but what counts as a small deposit becomes a little smaller for them: 30 per cent rather than 35 per cent.

Anti-money laundering laws

Expect some extra paperwork the next time you deal with a real estate agent – they are now captured by the anti-money laundering and counter-financing of terrorism laws.

These rules are designed to stop criminals from laundering their money through New Zealand businesses, or financing terrorism.

It means real estate agents will need to (among other things) verify their clients’ identities, and might have to ask more questions about where their money comes from.

Pricier cigarettes

Tobacco and tobacco products have now become another 10 per cent more expensive, thanks to a

tax hike.

Tertiary education

The tax on international student fees for private tertiary education providers has doubled with the arrival of the new year. That money is used for marketing, quality assurance, and to reimburse students who are caught out when a provider closes.

Woodburners

You are now unable able to get a building consent for a lowemission woodburner in Timaru, Ashburton, Christchurch, Rangiora or Kaiapoi clean air zones, on properties under 2 hectares.

Plastic bags

You won’t get a single-use plastic bag with your shopping from any supermarket in 2019. Foodstuffs is following Countdown’s lead and removing them from its supermarkets.