Due to current market conditions there have been a number of reductions in levels that lenders are prepared to lend to. It has mainly been with the “Low Doc” or “No Financials” variety of loans.
In addition “servicing criteria”, an applicants calculated ability to cover the monthly cost of a loan, has been tightening too.
Some, but not all, are as follows…
ASB low doc was 80% this changed last Friday to 60%, and we have just heard that as of today its now zero %…IE: no low docs!
UPDATE 3.30pm ASB is restricting all housing lending for new customers to 80%
Westpac low doc was 85% now 65%
In addition some lenders are showing reluctance to lend on apartments, unsurprisingly given the recent waves of negative publicity.
Sovereign, a lender we have regularly used for apartments in the past, won’t currently lend anything on an apartment in a building with more than 3 floors.
Kiwibank is also not doing low doc loans on apartments.
Still a round of tax cuts went into your paycheck on the 1st of October, so it isn’t all bad. 😆