Westpac NZ tones down risky home lending amid growing volatility in Auckland house prices

Fri, 03 May 2013

By Paul McBeth May 3 (BusinessDesk) - Westpac New Zealand has pulled back on its level of mortgage lending where it wears the bulk of the risk, amid increasingly volatile house prices. The lender has reduced its level of lending above an 80 percent loan-to-value ratio (LVR) to about 21 percent from about 22 percent a year after house prices in Auckland and Christchurch rose at a level Westpac wasn't "comfortable" with, chief executive Peter Clare told BusinessDesk. That comes as the bank introduced a 25 basis points margin on low equity loan...

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