Banks are starting to clamp down on lending to investors, ahead of controversial planned changes by the Government.
ANZ, New Zealand’s biggest retail bank, has revealed this afternoon it will decrease the amount of rental income it takes into consideration when assessing lending for residential investors.
That reduces it from 75 per cent to 65 per cent.
The most controversial part of the Government’s plans, which was announced in March, to take the heat out of the housing market is to remove the ability for property investors to offset their interest expenses against their rental income when calculating their tax obligations.
It’s being phased in over a four-year period from October, but ANZ is jumping in ahead of that.
The bank says that’s because it thinks it’ll have an impact on serviceability of loans for many investors.