Restrictions based on offshore borrowers
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The last week has seen policy changes by ASB, ANZ, BNZ and Westpac targeted at offshore borrowers. Effectively while this again looks like Banks are massively tightening criteria this is in reaction to an extent to mortgage fraud issues which have eventuated in Australia and are designed to limit the chance of this happening here. Basic changes are that foreign income for borrowers who are.....
ANZ tighten lending criteria for investment builds
On Friday the 3rd of June ANZ announced a number of changes to their lending criteria. The key changes for investors to focus on are the removal of the Combined Collateral Exemption and that ANZ will no longer provide mortgages for construction for investment properties......
Potential Increases in Investment Mortgage Pricing
Last November the Reserve Bank increased the amount of capital Banks needed to hold when lending on investment properties which we comments on in a previous blog HERE. As per our comments then the Banks have been absorbing so far the pricing difference with it being such a competitive market that they are not wanting to lose market share. In the last couple of weeks we.....
Not meeting Main Bank criteria??
With the tightening of Bank rules bought on by the RBNZ changes as well as an increase in borrowers or situations who don’t quite fit into the standard bank space I thought it may be a relevant time to raise a few cases.....
Debt to Income Ratio’s
Keep an eye out over the next 6 months or so in regards to the above. The RBNZ’s main approach since introducing Macropudential policies in 2013 as a means outside of using interest rates to control the property markets has been around equity based or LVR controls....
Slight Alterations Announced to RBNZ Auckland Property Investment LVR Restrictions
The RBNZ has pushed the start date of the introduction to the 30% deposit requirement back from an original intro date of the 1st of October to it now being bought in on the 1st of November. There is not much to this as this as all banks bar one have already introduced the rule and even for preapprovals the fine print stated that loans had to be issued based on the original date. There will also now.....
Market Update - April 2015
While there is still a lot of global volatility many things seem to be staying the same at the moment. The Auckland housing market is still going ballistic, with what seems ever increasing net migration, the council seems to be getting further and further behind in regards to issues consents to fix the supply side of the equation and the Bank war continues.....
BNZ Back in Mortgage Broker Market
While Kris Pedersen Mortgages have used BNZ a number of times on an unofficial basis they have announced that they are formally coming back in to the broker market. BNZ will not initially be accessible to all mortgage brokers, with less than 10% or so of the broker market having access to the official BNZ mortgage lending.....
How Lender Qualifying Rates Have Changed!
The Banks have increased their ‘qualifying’ interest rate for assessing debt serviceability. As a result loans that would have been secured earlier are now being rejected so preparation is key when applying for a mortgage......
RBNZ Property Investor Rule Changes Deferred
Many of you may be aware that the Reserve Bank has been planning to introduce a new rule that would immediately impact on property investors with five or more properties with one Bank.....
Above 80% LVR Lending
It is widely known that in October 2013 the Reserve Bank Governor (Graeme Wheeler) introduced restrictions on Banks mortgage lending over 80% of the LVR (loan to valuation ratio). Graeme’s motivation was to cool the housing market due to house price inflationary stimuli and recent commentary suggests the strategy has largely worked. However.....
