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 be a 5% exemption speed limit similar to the speed limit for lending above 80% LVR that was introduced on the 1ast of October
2014. However just like the introduction Banks are not likely to get anywhere near the maximum threshold and are mainly likely to use it for
situations like allowing clients to fix leaky buildings and remedial work to a small scale.
A key point to note and one which Kris Pedersen Mortgages has always recommended anyway is that clients are going to be better to split bank
rather than keeping both owner occupied and investment properties at the same bank. A key point was raised in the most recent RBNZ update
which stated: In terms of bank customers with mixed collateral such as an owner-occupied Auckland house plus Auckland rental properties, the
Reserve Bank says bank treatment of such customers must see them "placed in the most restrictive relevant category."
This means that at this stage clients who split their owner occupied property away from their rentals may still be able to leverage this to
80% to raise further equity whereas if they stay at the same bank the owner occupied property is likely to get pegged at a 70% LVR maximum.
If you would like to discuss this further feel free to email me at kris@krispedersen.co.nz and
we can advise if there is a better set up for you.