21 Jul 2015

Investors see impact of new loan rules

2:41 pm on 21 July 2015

The Bankers Association says investors will need to hustle if they are seeking a bank loan to buy an Auckland property from October with a small deposit.

Home for sale

Photo: RNZ / Diego Opatowski

The Reserve Bank wants to introduce tougher lending rules to ensure Auckland property investors have at least 30 percent down to qualify for a commercial bank loan.

Bankers Association chief executive Kirk Hope said retail banks were honouring pre-approvals to property investors made prior to 16 June, but all new applications were being approved on a case by case basis.

"Banks need to move pretty quickly to ensure that they can meet the 1 October deadline for the implementation of the policy," he said.