The RBNZ has changed the deposit rules. Bank can now allow more low deposit home buyers to borrow.

Home Buyers

After the 1st of January the banks can lend to two out ten buyers with less than a twenty percent deposit. Twenty five percent more than the current rule of 1.5 out of ten. The banks will probably take a couple of months to get a handle on dealing with the new rules. So we expect more competition for home buying after February.

Investment Property Buyers

Deposit requirement for investors will drop from the current 35% to 30%. Which might be tens of thousands dollars less in the main town centers where an investment starts in the $500k range.