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ASB is moving to quickly increase the minimum deposit investors need for a New Zealand home deposit by 10 percent, in a move to support first-time home buyers.
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Others are still waiting to have their homes assessed for damage, and some are likely to be convicted. Source: 1 NEWS
Investors will now be required to make a 30 percent deposit instead of the current 20 percent in the wake of the Reserve Bank of New Zealand’s announcement yesterday that it is considering the reintroduction of loan-to-value restrictions (LVR) in March. from 2021.
“ASB believes that a balanced and sustainable housing market is in the best interest of all New Zealanders,” said CEO Vittoria Shortt. so we are choosing to take this step now. “
Shortt said the loan market has improved markedly since New Zealand entered its first lockdown. Covid-19 has not impacted the real estate market as anticipated and ASB is now witnessing rapid growth in loan volumes, he said.
“The number of applications we are receiving is at an all-time high, 70% more than this time last year, and while the proportion of first-home loans has increased, we have seen a rapid increase since Covid-19 in investor loans. If this surge in investor demand continues, it could lead the country down a potentially unsustainable path. “
Shortt said pre-approvals that are already in place are not affected.
