News

ANZ eases apartment lending rules

ANZ has relaxed its rules for apartment lending as banks look to support higher density accommodation in New Zealand.

Thursday, July 01st 2021

The bank will now accept loan applications if buyers have a deposit of 20%, for apartments that are 38m² or larger.

Previously, the bank had asked for 50% deposits if an apartment was smaller than 45m².

While it has relaxed previous rules, the big four lender will only provide loans for apartments with separate living room and bedroom areas.

Other banks also have restrictive policies on apartment lending.

BNZ only accepts 20% deposits on apartments 50m² or bigger. Kiwibank and ASB accept 20% deposits on apartments 40m² or larger.

Advisers welcomed the news.

Glen McLeod of Edge Mortgages said he had already fielded more enquiries.

"It's a really good move by ANZ that gives first home buyers areal chance to get into the market. With house prices on the rise, the smaller apartments are much more attainable due to the price. I feel like the property ladder is once again a real thing. This as a first step seems more logical."

Ben Kelleher, ANZ's managing director for personal lending, said the bank wanted to "do our bit to help people on to the property ladder", amid the worsening housing crisis.

"Apartments are often a more affordable entry point into the housing market. In addition, as cities intensify, apartments are becoming more common and popular choices for home buyers," he said.

"Lending for apartments does carry more risk than for other property, and we’ll still need a higher, 50% deposit for smaller apartments below 38m² and other, non-standard apartments like leasehold or studio apartments. Higher risks can include the ability for the property to maintain its value and increase over time, building defects, the quality of the body corporate and leasehold tenure.

"However, it’s important that home ownership is accessible to as many Kiwis as possible. So, we’ve changed our rules to unlock a wider range of apartments at lower deposits, as an affordable property option for more people."

The ANZ rule change comes the same week as the big four bank launched its new build variable rate to boost construction.

ANZ's 1.68% Blueprint to Build loan is the cheapest on offer in New Zealand.

Comments

No comments yet

Most Read

Unity First Home Buyer special 4.29
SBS FirstHome Combo 4.29
Co-operative Bank - First Home Special 4.85
China Construction Bank 4.85
ICBC 4.85
TSB Special 4.89
Kiwibank Special 4.89
ASB Bank 4.89
SBS Bank Special 4.89
Westpac Special 4.89
BNZ - Std 4.89
Nelson Building Society 4.93
ICBC 4.95
SBS Bank Special 4.95
China Construction Bank 4.95
Wairarapa Building Society 4.95
TSB Special 4.95
ANZ Special 4.95
ASB Bank 4.95
Kainga Ora 4.95
Westpac Special 4.95
AIA - Go Home Loans 4.95
SBS Bank Special 5.39
Westpac Special 5.39
ICBC 5.39
Co-operative Bank - Owner Occ 5.59
BNZ - Std 5.59
BNZ - Classic 5.59
AIA - Go Home Loans 5.59
ASB Bank 5.59
Kainga Ora 5.69
Kiwibank Special 5.79
ANZ 5.79
SBS Construction lending for FHB 3.94
AIA - Back My Build 4.44
CFML 321 Loans 4.99
Co-operative Bank - Owner Occ 5.95
Co-operative Bank - Standard 5.95
Heartland Bank - Online 5.99
Pepper Money Prime 6.29
Kiwibank - Offset 6.35
Kiwibank 6.35
TSB Special 6.39
Kainga Ora 6.44

More Stories

Four decades of 6-7% yearly house price growth ending

Friday, March 21st 2025

Four decades of 6-7% yearly house price growth ending

New Zealander’s reliance on property capital gains in the mid-single digits is at an end.

[TMM Podcast] Yelsa serves up “marine reserve” of property buyers

Friday, January 31st 2025

[TMM Podcast] Yelsa serves up “marine reserve” of property buyers

It’s been years in the making and former real estate agent Mike Harvey is now coming to market with his platform matching buyers and sellers, an offering he says will be a gamechanger for the industry.

Leaving last year's stumbling housing market behind

Friday, January 17th 2025

Leaving last year's stumbling housing market behind

As interest rates ease and job losses climb, New Zealand’s housing market faces a mixed year of modest growth, with conflicting forces shaping the outlook for homebuyers and investors.

Don’t bet on house prices rising faster than incomes

Wednesday, January 15th 2025

Don’t bet on house prices rising faster than incomes

Former Reserve Bank Governor and National Party leader Don Brash says there are grounds for believing that house prices may finally have ended the three-decade period when they rose significantly faster than incomes.