Investment mortgages and non Bank Lenders.......

[brokerman]

Just a heads up that any non Bank lender who is funded by a Bank will no longer be able to offer 80% standalone investment mortgages. There are still alternatives though outside of Auckland via CU's for example as they not restricted by Reserve Bank diktat or a couple at present in Auckland where the owner occupied is also offered as security.

[Bobsyouruncle]

Wow.

[Anthonyacat]

To be clear - is this both Resimac and Liberty? Are there any major non bank lenders who are not funded by a bank?

[sidinz]

There are still alternatives though outside of Auckland via CU's for example as they not restricted by Reserve Bank diktat or a couple at present in Auckland where the owner occupied is also offered as security.

How does it work if there is little/no lending on the owner occupied?

[Wellington Broker]

How does it work if there is little/no lending on the owner occupied?

Can still go up to 80% of value with most banks

[sidinz]

Can still go up to 80% of value with most banks

I don't think you understood me. I was referring to Brokerman's post about a T2 lender requiring the owner-occupied mortgage as well. So I was wondering what they would say/require when there isn't an owner-occupier mortgage.

[Wellington Broker]

I don't think you understood me. I was referring to Brokerman's post about a T2 lender requiring the owner-occupied mortgage as well. So I was wondering what they would say/require when there isn't an owner-occupier mortgage.

If this is Resimac we're talking about then last I heard they don't require security over the O-O home if there's no mortgage. That was before some of these new enforcements came in though so wouldn't be surprised to see them at max 60 LVR for investor only security. brokerman writes more Resimac deals than anyone in the country just about so he will have a better idea.

Under those circumstances you outlined though there have been options with first tier lenders to go to 80% of property value if there is no mortgage in place. Typically they have defined investor lending on a basis of security held rather than loan purpose.