Westpac New Zealand has confirmed it’s withdrawing mortgage pre-approvals for some borrowers following the RBNZ’s new lending restrictions.
According to the New Zealand Herald, real estate agents are already claiming first home buyers are being driven from the market.
The new regulations limit the number of home loans banks can make to buyers with deposits of less than 20% and took effect two weeks ago, prompting widespread cancellation of mortgage pre-approvals by ASB Bank for buyers with low deposits.
A Westpac spokesperson told the Herald that, in some instances, customers may be told the bank cannot continue pre-approvals under the existing terms, but that there is a ‘whole raft’ of products the bank would look at to try and help.
A survey of 420 real estate agents by the Real Estate Institute New Zealand (REINZ) suggests the new rules are hitting first home buyers hard.
Almost half (41%) of those surveyed noticed fewer first home buyers so far this month, down from September when 24% of agents noticed more first home buyers.