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.”