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Originally Posted by Lightspeed
lolz, so explain why one is racist and the other isn't? They both seem to be trying to address a problem by excluding foreigners.
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Sounds like BNZ's policy is quite well thought out. It also inhibits NZ citizens who are not living in NZ from borrowing to the hilt. Also much easier for the banks to have recall on the loans when dealing with people residing within NZ.
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A BNZ spokeswoman said a maximum allowable loan to value ratio (LVR) of 60 per cent would also be required of New Zealand and Australian citizens and permanent residency holders who used foreign income to service a loan but did not reside in New Zealand.
A loan-to-value ratio is a measure of how much a bank lends compared to the value of a property.
Customers in this category would also have a 40 per cent "shade" applied to the value of their income earned overseas.
This means if a customer is a New Zealand or Australian citizen who is living overseas and earning income overseas, only 60 per cent of that income would be taken into account when the bank considered their ability to service a new home loan in New Zealand.
A Westpac spokeswoman said on Thursday the bank would no longer lend to non-resident borrowers with overseas income.
Borrowers on temporary resident visas would only be accepted if they had both a New Zealand address and New Zealand based income.
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