Otago Daily Times

ANZ raises deposit for investors

- TAMSYN PARKER

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

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