20 July, 2016
Westpac to work in the spirit of new RBNZ regulation
The RBNZ laid out clear timelines yesterday around the maximum percentage that property investors can make up in new lending by banks.
There is a shorter transition period allowed for banks to meet the RBNZ’s requirements than in 2013 and 2015 when there was a six month period to make all the necessary adjustments and comply.
The new regulations announced yesterday are expected to come into effect in less than six weeks on 1 September with the RBNZ asking banks to act within the spirit of the new regulations immediately.
Westpac has already signalled it will work in the spirit of the new regulation.
To do so, and given the period allowed for adjustment, we will not take new loan applications, beyond the revised 60% LVR restriction, from property investors from 4.30pm today.
Those with pre-approvals will still be assessed as per the usual process.
If you think you are affected by these changes, please come in and talk to one of our bankers.