The banks are reducing their serviceability criteria, so some people who couldn’t qualify for an investment property loan may now be able to.
Both ASB and BNZ work out investment property loans over a 25 year term and the servicing rate is 7.90% at BNZ and 7.80% at ASB.
Kiwibank, ANZ and Westpac all use a lower rate of around 7.35% and apply a 30 year term for investment loans, making it a bit easier to qualify for a loan with these banks.
ASB have just dropped theirs to 7.20%. ANZ are expected to drop theirs by -0.50% shortly.
In Australia the banks use rates of 5.5-5.7%, so the NZ serviceability rates could drop further.