Easing of lending rules could open new doors for borrowers

A new proposal from the Reserve Bank of New Zealand (RBNZ) could open new doors for borrowers. That next step could be more achievable – especially if you’re working with a smaller deposit.

A shift in lending rules

The RBNZ is looking to ease current loan-to-value ratio (LVR) restrictions – a move to improve access to the property market. These rules limit how much banks can lend buyers with lower deposits, but the proposed update will give lenders more flexibility.

Here’s what’s on the table:

• Owner-occupiers – Up to 25% of new lending (currently 20%) could go to borrowers with less than a 20% deposit.
• Investors – Up to 10% of new lending (currently 5%) could be approved for those with less than a 30% deposit.

These changes are expected to come into effect this December, following a final consultation period.

Why this matters

If you’re navigating the current housing market, this proposed change could mean:

• Greater lending opportunities for first-home buyers
• Increased options for property investors
• More competitive lending offers for anyone considering refinancing

In short, it could open more doors – literally and financially!

Take your next step with Enva

Understanding where you stand is key. At Enva, we’re here to help you move forward with clarity and confidence.

Our mortgage team can:

• Evaluate how these proposed changes could enhance your borrowing capacity
• Explore bank and lender options tailored to your deposit and goals
• Guide first-home buyers through KiwiSaver choices and funding strategies
• Equip property investors with up-to-date lending insights

Ready to make a move? Now is a great time to get in touch with one of our Enva mortgage advisers, we’re here to help you navigate the next step!
Email us at mortgages@enva.co.nz, or call 0508 287 672 to book a review.