Apartment lending rules 'too restrictive'

Real estate agents are complaining about banks' lending criteria on apartments.

Martin Dunn of City Sales and Rachel Dovey of Bayleys said tight rules were restricting the market.

But BNZ external relations manager Diane Maxwell said the bank had always taken a relatively conservative approach to lending on inner-city apartments.

"We haven't changed our lending criteria on that this year," she said.

Mike Davy, senior product manager for housing at Westpac, said smaller apartments were a higher risk.

"We still consider purchases with a deposit of 25 per cent for apartments over 50sq m. But we may require a higher deposit for smaller apartments," he said.

Dunn criticised banks taking a harder-line approach to apartments than houses

To read the full NZ Herald story click here

Posted: 6 Aug 2009

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