BNZ to re-introduce pre-COVID-19 loan-to-value ratios

< 1 MIN

Bank of New Zealand (BNZ) announced today it was returning to its pre-COVID-19 home lending loan-to-value (LVR) ratio settings for property investors.

This means that from the 7th of December 2020, BNZ will require a minimum 30% deposit from residential property investors.

The Reserve Bank of New Zealand removed the LVR requirements during the COVID-19 Alert Level Four lockdown in April, meaning BNZ used its own LVR criteria for lending to owner-occupiers and residential investors.

Throughout this period, BNZ has taken a prudent and careful approach to lending, irrespective of LVR settings.

BNZ Executive, Customer, Products and Services, Dan Huggins, says, “Given the importance of ensuring home ownership remains within reach for New Zealanders and that residential property prices remain sustainable, we believe the right thing to do is to move back to our pre-COVID-19 loan-to-value settings.”

BNZ Media
Bank of New Zealand was founded in 1861 and has been an integral part of New Zealand life ever since. Today the bank employs over 5,000 people in New Zealand; works with Personal, Business, Agri and Private Wealth clients; and has 180 branches and Partners’​ Centres across NZ.