"We understand that banks have been applying the new LVR restrictions to new loan applications since the LVR changes were announced. Most lending to owner occupiers would also require a 20 per cent minimum deposit with both changes rolled out across New Zealand. Last month the central bank announced plans to introduce new bank conditions requiring most loans to residential property investors to have a minimum 40 per cent deposit. The Reserve Bank has delayed the start of changes to investor loan-to-value restrictions (LVRs) nationwide from 1 September to 1 October 2016, after talking to the banks about time required to honour pre-approved loans. Rules requiring Auckland investors to hold a minimum 30 per cent deposit, and Auckland residential buyers to hold 20 per cent, are already in place.

Source: New Zealand Herald August 12, 2016 01:41 UTC