There is a price war heading our way borrowers with ASB and Kiwibank offering 2.99% special fix rates. This will be welcome news to borrowers as we look to recover from the financial impacts of COVID-19.

For many people, buying a home is part of the great kiwi dream. Yet with the high cost of living, saving for a deposit can be extremely difficult. In recognition of this, NZ banks have been lending to low deposit borrowers more and more, in fact some banks are accepting as little as 5% deposit - 95% home loans!

The Reserve Bank of NZ (RBNZ) announced yesterday that effective 1st May 2020 it will remove for 12 months the LVR restrictions that were imposed on NZ banks since 2013. The NZ government is also helping out Small Business... So what will happen now?

The Reserve Bank had issued a letter to banks about a week ago asking for comments around their proposal to remove the mortgage loan-to-value ratio(LVR) restrictions. The banks had until close of business today to comment on the proposals before a decision was made. If these restrictions are removed then this will be welcomed by not just first home buyers or investors but those who are self employed who need extra cashflow which can be borrowed against their home.

Westpac have today reduced their special home loan rates. Check out how their rate changes compare across the 8 New Zealand banks.