A BNZ spokeswoman said its proportion of interest-only lending was significantly lower than the overall market's proportion of new interest-only lending, of 41 per cent. Westpac slashes interest-only home loans termsANDY JACKSON/FAIRFAX NZ Westpac consumer bank and wealth general manager Simon Power said reducing interest only loan terms was "prudent and timely". BNZ allowed interest-only lending terms up to five years. Westpac has reduced its interest-only lending term from 15 years to a maximum of five years as investors dominate the housing market. An interest-only loan is where borrowers pay only the interest but nothing off the principal.

Source: Stuff July 11, 2016 23:11 UTC