Kiwibank hits lending brakes

Kiwibank has told mortgage advisers that it is unable to accept any new applications for lending over 80% that is restricted by the Reserve Bank’s speed limits.

Banks can only lend 10% of their new loans to people with equity of less than 20%.

It said the bank’s high-LVR lending was sitting above its speed limit target, as it moved into December and January when lending volume was usually lower.

Kiwibank said it still wanted applications where the LVR was below 80%, top-ups where the value was less than $75,000, Welcome Home Loans, construction loans and refinances over 80% where the loan amount was not increasing in value between the banks.

“Any applications that have already been submitted but are outside the above criteria will not be able to be assessed at this time.”