ASB shut down new build investor loans
Despite new properties being exempt from new lending restrictions, ASB Bank has stopped providing new build loans to investors above 60% LVR.
Wednesday, February 17th 2021, 10:43AM
The big four bank has stopped granting loans to investors for new properties unless they have a 40% deposit. The decision comes amid a wider clampdown on investor activity.
Advisers report that ASB has taken the decision in recent weeks. It comes after the Reserve Bank imposed a new 60/5 rule for lenders, meaning they cannot lend more than 5% of their book to investors with less than a 40% deposit.
ASB executive general manager retail banking Craig Sims told the NZ Herald it would lend up to 60% to investors, regardless of whether the home was new or not.
"We are concerned the continued high levels of investor demand are unsustainable and we are focused on ensuring a balanced and sustainable housing market, which is in the best interests of all New Zealanders," Sims said.
Sims said ASB would allow lending above 80% LVR to owner-occupiers for construction purposes.
TMM Online has asked ASB for further comment.
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