Policy library

Banks face limits on the share of new lending at high LVRs. For owner-occupiers, only a small share of new lending may be above 80% LVR (i.e. a deposit of less than 20%). For investors, the threshold is tighter, with high-LVR lending generally above 65–70% LVR restricted. Loans that breach a bank's internal speed-limit allocation are commonly declined or referred to a low-deposit/First Home Loan pathway.

Lending on newly built properties is exempt from the LVR restrictions. This allows banks to lend above the usual high-LVR thresholds for new builds and turn-key construction without it counting against their speed-limit allocation, supporting higher-LVR lending for new dwellings.

Debt-to-income restrictions limit the share of new lending banks may write at high DTIs. Banks may write only a limited share of new owner-occupier lending at a DTI above 6, and a limited share of new investor lending at a DTI above 7. DTI is total borrowing divided by gross annual income. New builds are exempt from the DTI restrictions.

The First Home Loan lets eligible first-home buyers borrow with as little as a 5% deposit through participating lenders, with Kāinga Ora underwriting the additional risk. Applicants must meet income caps (for a single buyer an income cap applies; a higher cap applies for two or more buyers), intend to live in the home, and meet the lender's own credit criteria. House price caps do not apply to the First Home Loan, but income and first-home-buyer status do.

First Home Loans are issued by participating lenders, which include a number of banks and non-bank lenders. The borrower applies through the participating lender, who assesses the application against both Kāinga Ora's criteria and their own lending policy.

On a fixed-rate home loan, ANZ customers can make additional lump-sum or increased repayments of up to 5% of the loan balance each year without triggering an early-repayment cost. Repaying more than the allowance, or fully repaying or restructuring a fixed loan early, may incur an early-repayment recovery calculated by the bank.

ANZ generally looks for at least a 20% deposit for an owner-occupied purchase of an existing property, with low-deposit lending available in limited cases including new builds and First Home Loan applications. Investment-property lending generally requires a larger deposit. A genuine-savings and deposit-source check applies, and gifted deposits typically require a signed gifting letter confirming the funds are non-repayable.

Self-employed applicants are generally assessed on two years of financial statements and tax returns. Seasonal, overtime and bonus income may be considered where there is a consistent history, typically averaged and shaded. Rental income from an investment property is commonly counted at a reduced percentage of the gross rent for servicing.

ASB allows customers on a fixed-rate home loan to increase their regular repayments by an additional amount each fortnight without an early-repayment charge, in addition to allowing lump-sum repayments within set limits. Breaking a fixed rate or exceeding the allowance may incur an early-repayment adjustment.

ASB offers home loans with low-deposit options for eligible buyers, including First Home Loan applications and new builds, while existing-property owner-occupier lending generally targets a 20% deposit. Deposit sources such as KiwiSaver first-home withdrawals and gifted funds are accepted with appropriate evidence.

BNZ customers on a fixed-rate home loan can make extra repayments up to a set percentage of the loan each year without an early-repayment charge. Repaying above the allowance or breaking a fixed term early may result in an early-repayment recovery, calculated with reference to wholesale rate movements.

BNZ generally requires a 20% deposit for existing owner-occupied property, with low-deposit and First Home Loan pathways available for eligible buyers and new builds. Investor lending requires a larger deposit consistent with LVR restrictions. Gifted deposits require a signed gifting letter.

Westpac allows customers on a fixed-rate home loan to increase their contracted repayments by up to 20% without an early-repayment charge, alongside allowable lump-sum repayments. Exceeding the allowance or breaking a fixed rate early may incur a break cost.

Westpac offers low-deposit lending for eligible first-home buyers and new builds, including First Home Loan applications, while existing owner-occupier lending generally targets a 20% deposit. KiwiSaver first-home withdrawals and gifted deposits are accepted with evidence.

Kiwibank allows customers on a fixed-rate home loan to make extra repayments up to a set annual allowance without an early-repayment charge. Repaying above the allowance or breaking a fixed term early may incur an early-repayment cost.

Kiwibank supports first-home buyers including First Home Loan applications and low-deposit lending on new builds. As a New Zealand-owned bank, Kiwibank generally requires applicants to be New Zealand citizens or permanent residents; temporary-visa applicants are typically not eligible. Existing owner-occupier lending targets a 20% deposit.

Pepper Money lends on a range of property types and considers applicants on work visas and a broader set of circumstances than main banks, with deposit requirements set by product and risk. As a non-bank, Pepper is not bound by the same LVR speed-limit allocations, allowing case-by-case higher-LVR consideration.

Liberty is a non-bank lender offering home loans for self-employed borrowers and applicants whose circumstances fall outside main-bank policy, including those with a shorter self-employed trading history. Alt-doc income verification may be available. Pricing is risk-based.

Liberty considers a range of property types and deposit situations on a case-by-case basis and, as a non-bank, is not bound by LVR speed-limit allocations. Work-visa and non-resident applications may be considered subject to product criteria.