Major Bank Make Important Changes to Lending Policy

Major High Street Bank Makes Important Changes to Lending Policy

One of the major high street banks have made some significant changes to their lending policy effective immediately in what we believe is to curb the Reserve Bank from introducing debt to income ratios to slow down the housing market.

Summary of LVR changes:

1. Reduce the maximum LVR for Auckland Owner Occupied lending to 85%

2. Reduce the maximum LVR for lending outside of Auckland to 90%

3. Reduce the maximum LVR for exemptions across New Zealand (turnkey, refinance,
construction and portable lending) to 90%

Other Changes:

RIL (Residential Investment Loan) is not available for the purchase of bare land (including where the intention is construction or turnkey). Will consider construction and turnkey lending for Owner Occupiers.

Changes from other Banks

We are anticipating changes by other high street banks so watch this space.

Foreign Investors

There is a lot of talk about pending changes for foreign investors which could take effect within the next week so follow our facebook change to keep up to date.


We are expecting further changes to all of the banks polices in the coming months along with potential legislation changes by the Reserve Bank so our role is more crucial than ever to navigate you through the process. We will significantly increase the chances of achieving your goals.

Banks really have never been more different from the other than they are today.