Banks already introducing tougher rules for property investors
Although the Reserve Bank is only consulting on introducing tougher lending rules of property investors, four lenders have already implemented the proposed changes.
Westpac was first out of the blocks and it has been followed by ASB, Sovereign and SBS in introducing a maximum LVR of 60% for all new property investment loans.
ANZ chief executive David Hisco says in an opinion piece published in the NZ Herald that the central bank should "heavily increase LVR limits for property investors."
"The Reserve Bank wants most property investors around the country to have 40% deposits in future. We think they should go harder and ask for 60%. Almost half of house sales in Auckland are to property investors. Taking them out of the market will be unpopular amongst investors but it may end up doing them a favour.
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