Property Investors

  1. Required deposit increased to 40% for a least 95% of the loan
  2. Restrictions for property investor lending has been expanded from Auckland to the whole of New Zealand

Home Buyers

Required deposit remains at 20% for at least 90% of the loan
Restrictions on owner-occupied lending has been expanded from Auckland to the whole of New Zealand
These proposed changes could take effect on 1 September, 2016.

Update as of 21 July 2016

The following banks have announced that they will now be following the 60% LVR requirement for investment lending on new applications:


For any pre-approvals, conditional approvals, or loans to settle, they will honour the “old” LVR policy.

They have also stated that there is room to approve above 60% IF the bank also holds your owner occupied residence.

Given that The Reserve Bank restrictions are not officially in place, there still may be room to get some approved prior to this becoming an official position. However, for now, the bank policy is still 60%.

If you have an approval already
This will be honoured until the expiry date of the approval – at which time you will need to reapply under the new policy.

If you are seeking to top up
In the past 24 hours, we have fielded multiple enquiries about top ups prior to the new LVR restrictions. At this point of time, I can say, we can still try, but we may not be successful. Until the policy is made official by The Reserve Bank, there is still a possibility to get some lending still approved – but there are absolutely no guarantees on this.

More information will be provided as soon as the Reserve Bank releases updates regarding this announcement.