ANZ raises deposit for investors

AUCKLAND: ANZ New Zealand has upped the ante for residential property investors by increasing the minimum deposit to 40%.

The country’s largest bank said the change would be effective immediately and was being undertaken to try to bring balance back to the housing market.

The bank brought back a 30% investor deposit requirement in November after the Reserve Bank signalled it would be bringing back bank lending restrictions dropped in April to help cope with the Covid19 crisis.

Ben Kelleher, ANZ managing director personal, said it would also be recommending to the Reserve Bank that the loan to value ratios for property investors be set to 60% rather than the proposed 70%.

‘‘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 firsthome buyers, potentially locking a generation of New Zealanders out of home ownership.’’

Mr Kelleher said it was 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.’’

The Reserve Bank opened consultation on bringing back LVR restrictions last week.

A strong run in the housing market has prompted the Reserve Bank to bring them back sooner with a plan to restart the restrictions on March 1. — The New Zealand Herald