Auckland Rental Property and Mortgage Lending

rental property: The change meant that borrowers would generally need a 30- percent deposit for a mortgage loan secured against Auckland rental property, according to Xinhua China. The new rules were scheduled to become effective from Oct. 1, but the RBNZ on Friday moved the date back a month to enable banks to adapt their systems, said an RBNZ statement. In May, the RBNZ announced changes to its loan-to-value ratio rules to focus on rental property investors in Auckland, which is home to a quarter of the country population. Restrictions on loans to owner occupiers in Auckland would continue to apply, with banks allowed to make up to 10-percent of their new mortgage lending to such borrowers with LVRs exceeding 80 percent. RBNZ deputy governor Grant Spencer would expand on the Reserve Bank view of the property market in a speech on Aug. 24. Restrictions outside Auckland would be eased from Nov. 1, with banks allowed to make up to 15 percent of new mortgage lending to borrowers with LVRs exceeding 80 percent, regardless of whether the borrowers were owner occupiers or residential property investors. (news.financializer.com). As reported in the news.