New borrowers looking for an investment property loan at ASB will need a 40% deposit, bringing the bank in line with its rivals.
It comes amid a clampdown on investors, with many blaming landlords for fuelling the unprecedented rise in house prices since the beginning of the pandemic.
Chief executive Vittoria Shortt said: “We’re concerned the continued high levels of investor demand are unsustainable so effective immediately we are increasing the deposit required from investors to 40% from the current 30%.”
The moves deal another blow to investor clients, with rising political pressure on the property investor community.
“We are very focused on being a prudent and responsible lender. We all have to play our part and this decision to immediately increase the deposit required from investors is about ensuring a balanced and sustainable housing market which is in the best interests of all New Zealanders,” Shortt added.
According to ASB, pre-approvals already in place are unaffected. The change will apply to home loan applications and any top-ups which have not yet been conditionally or fully approved.
