More Customers Back On Top Of Lending

The initial 6-month loan repayment deferral period is coming to an end for many people – what does that mean for them?

ANZ has been checking in with customers to see how they are faring and to give support where we can to help them manage their finances.

From these conversations, it seem likely that 5%-10% of these customers will need further assistance after the initial deferral period ends.

We are talking to these customers about all the options, such as extending the loan term or switching to interest-only repayments. These alternatives may have less impact on the loan over the longer term compared to continuing a repayment deferral.

We are working with customers to ensure loan repayment deferrals are only granted when needed, when they benefit the borrower and when there is a reasonable prospect the customer will be able to resume payments when the deferral period ends.

Some Real Estate agents are saying banks are being "ultra-conservative" in their home lending approvals since Covid-19 hit. Is this true?

We’re still ready to support customers into their new homes. But as always, we have to make sure we’re supporting customers to make good borrowing decisions – particularly with higher LVR lending.

NZ banks have substantially reduced interest rates, reduced serviceability assessment rates and most have increased their maximum lending loan-to-value-ratio (LVR) percentage following the Reserve Bank temporarily removing LVR restrictions.

If you compare this July to previous years, the NZ banking sector gave more than $6.5b of home loan commitments. This is the largest July month since 2016.