“It’s important that homeownership is accessible to as many Kiwis as possible”
ANZ Bank New Zealand (ANZ) has reduced the apartment size at which it will require customers to have a higher deposit, effective immediately.
Previously, ANZ required a 50% deposit for any apartment smaller than 45 square metres. Under the new rules, customers only need a 20% deposit for freehold, standard apartments 38 square metres or larger.
Meanwhile, the bank will require a 50% deposit for small apartments below 38 square metres and other non-standard apartments, such as leasehold or studio apartments.
ANZ NZ managing director personal Ben Kelleher said the bank changed its rule on small apartment lending to help customers climb the property ladder in the country.
“Apartments are often a more affordable entry point into the housing market. In addition, as cities intensify, apartments are becoming a more common and popular choices for home buyers,” Kelleher said.
Read more: ANZ: Housing supply catching up to demand
Kelleher claimed that lending for apartments is riskier than lending for other types of property.
“Higher risks can include the ability for the property to maintain its value and increase over time, building defects, the quality of the body corporate, and leasehold tenure,” he added.
“However, it’s important that homeownership is accessible to as many Kiwis as possible. So, we’ve changed our rules to unlock a wider range of apartments at lower deposits as an affordable property option for more people.”
ANZ clarified that the new rules require a standard apartment to have a bedroom separate from the living area. Usual ANZ lending criteria, terms, conditions, and fees apply.
