Bank move makes it harder to buy a home

New Zealand's largest banking group has doubled its minimum mortgage deposit, leaving would-be homebuyers needing to find tens of thousands more before buying.

From today, customers of the ANZ and National will need a 20 per cent deposit, as the banks will not be offering loans for more than 80 per cent of the purchase price.

Borrowers previously needed only a 10 per cent deposit.

Between them, ANZ/National finance more than a third of all New Zealand's home loans.

The latest change will mean a person looking to buy an Auckland property at the median price of $433,000 will need a $86,600 deposit.

Median house buyers in Wellington will need to stump up $73,800 on a $369,000 property, and those in Christchurch will need to find $62,000 on the $310,000 median-priced house.

Other major banks ASB and Westpac decide minimum deposits case by case, though ASB spokeswoman Debby Bell said the bank instructed its staff "generally" to look for a minimum deposit of about 20 per cent.

To read the full NZ Herald story, click here

Posted: 28 Nov 2008

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