Advisers react to ANZ's LVR decision

Bruce Patten

ANZ, the nation's largest lender, this morning mandated that residential property investors would need a 40% deposit to get a home loan. 

The bank will also recommend the Reserve Bank introduces a 60% LVR limit on investors from next year.

NZFSG's Bruce Patten said: "I would suggest that the Reserve Bank was going there in March anyway, and the banks have probably just decided to do something now. They also might have been [trying] to placate the Reserve Bank," he added.

AdviceHQ's David Green added: "The implications are largely unknown at this point as it really depends if other lenders follow or the RBNZ imposes the same restrictions across the industry. In the short term, investors with ANZ pre-approvals will be more aggressive and take a "get in while you can" approach. They may also look to other lenders.