More Dwellings More Accessible to Investors

Investors hoping to acquire new properties in New Zealand are facing new requirements from the Reserve Bank – we explain what this could mean for you.

The New Requirements

From 1st October 2016, residential property investors will generally need a 40% deposit for when they buy a property, and owner-occupiers will generally need a 20% deposit.

With these requirements, the Reserve Bank aims to encourage purchasing of newly developed properties to encourage more properties to be built and increase the housing stock in the New Zealand housing market to slow the rapid house prices and property market.

Exemptions apply where:

Owner-occupiers or investors are constructing or purchasing a new dwelling (provided the loan commitment occurs prior to, or at an early stage of, construction of the dwelling).

Deposit Requirements For New Dwellings

When purchasing a new dwelling as an investment a deposit of only 20% is required as opposed to a 40% deposit when purchasing an existing dwelling. This allows investors to continue to expand their portfolio even if they can’t meet the 40% requirement but can get to 20%.

Rules Apply To Registered Banks Only

As the Reserve Bank rules apply to registered banks only, non-bank lenders are able to lend to levels greater than the banks, lowering the deposit requirements when dealing with this source of finance. Again this allows portfolio expansion when 40% deposit can't be achieved.

More Information

We suggest a Mortgage Broker should be able to help navigate the new rules, plus they should have access to non-bank finance. One who’s been particularly helpful and has banking and broking experience is Mark Cook of the Home Loan Shop

Mark Cook, Home Loan Shop

Tele: 022 044 2557


Interested to hear how we can help you and your investment? Find out how our Wellington Property managers can help you. We manage property in the Wellington and Hutt Valley regions. Feel confident your property and tenants are looked after by our professional Property managers with our property management services .

Discover how our Care & Return System will benefit you. Receive a no-obligation, FREE rental appraisal today for your Wellington investment property!

Call Jordan Atkinson - 027 297 0873

Quinovic Kent Terrace | Wellington

Call Allan Hartley - 027 522 9084

Quinovic Johnsonville | Wellington

Call Helen Vance - 027 487 8103

Quinovic Hutt Valley | Wellington

Get the latest news for landlords

Get a Free Rental Appraisal

Free and no-obligation! Receive a detailed report on the earning potential of your investment property.

Call Allan Hartley Today

Quinovic Johnsonville & Northern Suburbs

027 522 9084 or email me

Call Jordan Atkinson Today

Quinovic Kent Terrace Wellington

027 297 0873 or email me

Follow us: 



Receive latest investor news straight to your inbox. Sign Up

Call Helen Vance Today

Quinovic Hutt Valley

027 487 8103 or email me

© Quinovic Kent Terrace, Johnsonville and Hutt Valley Wellington Property Management 1988-2021. Privacy Policy