Chris McCain / Works
BNZ says it is important that house prices remain within the reach of ordinary buyers.
The Bank of New Zealand has joined ANZ, Westpac and ASB in raising the deposits required by residential real estate investors for property rental loans.
From December 7, investors will need a 30 percent deposit for an investment property loan.
Ordinary home buyers will still qualify for home loans with a 20% deposit.
BNZ Executive Director of Products and Services Dan Haggins said that given the importance of ensuring home ownership remained within the reach of buyers and that prices remained sustainable, the bank decided to return to the relationship between loan and value before cash ( LVR) requirements.
* The Reserve Bank is trying to reintroduce loan lending rules
* Mortgage lending restrictions can be eased right next week
* ASB offers KiwiBuild buyers a 95 percent mortgage
The move follows those of ANZ and ASB earlier this month, both citing high house prices and the importance of ordinary families being able to buy their own homes without being overwhelmed by investors.
Westpack was already seeking deposits from 30 per cent of real estate investors seeking loans to buy real estate for residential investment.
The Reserve Bank has already consulted on imposing higher LVR restrictions in March.
When ANZ made the move on November 13, personal banker Ben Kelleher said it was designed to attract more people to their homes.
“It is in everyone’s interest for apartment prices to be sustainable [in the] “In the long run, home ownership should be available for as many kiwis as possible,” Kelleher said.
On November 13, ASB CEO Vitoria Short said a sharp increase in investor demand for property threatened to drive house prices “potentially unsustainable”.
Reserve Bank Governor Adrian Orr has come under fire for his attempts to stimulate the economy, which has slashed mortgage rates as a boost to house price inflation.
On Tuesday, Treasury Secretary Grant Robertson wrote to Ohr, telling him it was time to think about house prices.
“Housing price volatility is detrimental to our goals of reducing inequality and poverty, and is also likely to have a negative impact on the government’s goal of creating a more productive and inclusive economy,” Robertson said in his letter.
He wanted the central bank to consider ways in which it and the government could work together to achieve a “sustainable moderation in house prices that we both demanded”.