The changes relate to lending on apartments in Auckland and have been made to support the council's Unitary Plan to to assist first home buyers.
Westpac says apartments are increasingly viewed by its first home buyer customers as a potential affordable housing option. Under the changes the maximum LVR for apartment lending is increasing from 80% LVR to 85% LVR.
"We are committed to supporting our customers into affordable housing solutions," Westpac director third party banking Kylie Kneale says.
The increased LVR maximum will be for owner occupier apartment lending only, limitations apply:
- A minimum apartment value of $355,000
- Minimum 50sqm (excludes decks, balconies, storage areas, car parks and common areas)
- Single living unit apartments and/ or on a single title only –‘dual key’ (or other variants) to be initially assessed based on the size of the smallest apartment area.
"Increasing our maximum LVR limit for apartments from 80% to 85% will widen customers' housing options and better help them onto the property ladder," Kneale says.
