The RBNZ has released some further changes to their exemptions which should make things a little bit better for investors.
The new restrictions limiting investment property buyers to a 40% deposit has been tweaked. The RBNZ have made some changes to the exemptions to their rule.
Exemptions which include:
Holiday homes, Construction or buying of the plans, a home and income have now been tweaked. Key changes are:
- Buying a rental property which is brand new is exempt, the big change is that an investor can buy a property is up to 6 months old from a developer with only a 20% deposit
- For clients with multiple properties as investments there was a snag when selling. If you sold one, the proceeds could be used to ensure the remaining loans were reduced unless you had more than 40% equity with the lender in your investments and or 80% for a home that you lived in. Good news, selling a property is exempt from the new rules. So now when selling it is up to the lenders discretion, which has usually meant that they will be happy with 80% of what is left. Basically this means that you could get access to more funds when selling if you have a multiple property portfolio.
Impact on approvals
