Mortgages

Building society tightens lending policy

The prospect of volatile house prices and concerns over debt levels have led Ashburton's Loan and Building Society (LBS) to adopt a more conservative lending policy.

Wednesday, June 16th 2004

LBS, which joined the New Zealand Exchange's alternative market in November, said it had become concerned during the past year at some clients' willingness to commit themselves to high levels of debt.

"With the prospect of higher volatility in housing values we have adopted a conservative policy and unlike some of our competitors we have not been prepared to sacrifice our lending policies to obtain loans," chairman George Brown said.

LBS was continuing to increase its loan book with low risk loans to farming families but commercial loans were more difficult to analyse and LBS required land or buildings as security in addition to good income levels.

The building society is forecasting bigger profits in the 2005 financial year after one-off costs impacted on last year's bottom line.

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SBS FirstHome Combo 6.74
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Unity 6.99
Co-operative Bank - First Home Special 7.04
ICBC 7.05
China Construction Bank 7.09
BNZ - Classic 7.24
ASB Bank 7.24
ANZ Special 7.24
TSB Special 7.24
Unity First Home Buyer special 6.45
Heartland Bank - Online 6.45
China Construction Bank 6.75
TSB Special 6.75
ICBC 6.75
ANZ Special 6.79
ASB Bank 6.79
AIA - Go Home Loans 6.79
Kiwibank Special 6.79
BNZ - Classic 6.79
Unity 6.79
Westpac Special 6.39
China Construction Bank 6.40
ICBC 6.49
SBS Bank Special 6.55
Kiwibank Special 6.55
BNZ - Classic 6.55
Co-operative Bank - Owner Occ 6.55
ASB Bank 6.55
AIA - Go Home Loans 6.55
TSB Special 6.59
Kainga Ora 6.99
SBS FirstHome Combo 6.19
AIA - Back My Build 6.19
ANZ Blueprint to Build 7.39
Credit Union Auckland 7.70
ICBC 7.85
Heartland Bank - Online 7.99
Pepper Money Essential 8.29
Co-operative Bank - Owner Occ 8.40
Co-operative Bank - Standard 8.40
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