Kiwibank has responded to the new rules issued by the Reserve Bank on lending to people with low deposits by promising to put first home buyers first in the lending queue.
Chief Executive Paul Brock said Kiwibank is still working through the implications of the new regulations and how they will affect the lending operation of the bank.
“When it comes to lending with deposits of less than 20 per cent, we will give priority to first home buyers over those who are buying investment properties.”
Mr Brock said Kiwibank has always been committed to getting people onto the property ladder.
“We strongly believe that the critical issue when assessing a loan application is the ability to service the debt rather than the amount of equity a person has in the loan.
“Equity can be built over time and we do not want to push people out of purchasing a family home while they wait years and years to save a much bigger deposit. However to do this we will have to set priorities for our lending and first home buyers come first, Mr Brock said.
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