Leon Chen
Aug 1, 2024
1. On July 1, ASB relaxed its income requirements for high LVR (>80%) loans, increasing the loan amount available for the same income.
2. On July 15, ANZ relaxed the income requirements for its high LVR (80.01% - 85.21%) loans, increasing the loan amount available for the same income.
3. On July 17th, Westapc adjusted its investment property loan policy in response to changes in the CCCFA, effective July 18th, 2024. Rental income from investment properties will be calculated at 75% of the actual amount. If the loan is used for the purchase, renovation, alteration, or refinance of the investment property, the bank will no longer need to include property tax expenses, insurance expenses, etc., in its debt repayment capacity calculation, nor will it need to review these expenses.
4. On July 29th, the ASB made some adjustments to its lending policy in response to changes in the CCCFA, no longer requiring verification of payments for other institutions' fixed liabilities. However, evidence of loan balances and limits, including student loans, is still required. The calculated interest rate for credit cards was lowered in the debt service capacity test.
5. On July 29th, ANZ adjusted its lending policy in response to the repeal of the affordability requirement in the CCCFA regulations: verification of payments for fixed liabilities from other institutions is no longer required. However, evidence of loan balances and limits, including student loans, is still necessary. Fixed expenses can be calculated based on client-reported costs, provided these costs have been roughly reviewed, are logical, reflect the actual situation, and are reasonable.
6. On August 5, ANZ lowered its internal rate of return for debt service calculations from 8.95% to 8.75%, which will slightly increase the amount of loans available under normal income conditions.
7. The latest interest rate information from New Zealand's four major banks as of August 1st is shown in the following figure.
