2 banks in NZ tighten mortgage lending to non-residents

Wellington

WESTPAC New Zealand and ANZ tightened lending to non-resident mortgage borrowers on Thursday, following the lead of their Australian parents, to reduce risk in New Zealand's booming housing market.

Westpac will no longer lend to non-resident borrowers paying off mortgages with overseas income, and borrowers on temporary resident visas would only be accepted if they have a local address and New Zealand-based income, a spokeswoman for the bank said in an e-mail. "The tightening of policy reduces risk and will contribute to further strengthening our home lending portfolio with customers," the Westpac spokeswoman said.