May 11, 2023
Deposit drop for home loans considered
There could be hope on the way for whānau with the Reserve Bank consulting with trading banks on whether it should drop the loan-to-value ratio below 20 percent.
That’s the amount needed for a deposit, and it was raised to dampen speculation.
Anthony Ririnui, the national manager for Māori banking services at ASB Bank, says the change would help many Māori wanting to get into their first homes.
“It is difficult to save and a lower amount that can be put forward to your first home is positive. I understand this is consultation, but it would be good to see something like this to support our whanau,” he says.
Mr Ririnui says a lower LVR means mortgage lenders can be more flexible in helping first home buyers.