| Parameter |
Details |
| Purpose |
- Purchase / acquisition of Residential Property
-
Refinance of loan already availed from any other institution
- Construction of new residential property
-
Major alteration / Repair / renovation / extension of the
existing house
-
Purchase of a section / plot of land. An undertaking by
borrower shall be obtained that with the help of bank
finance or otherwise a residential
- Top-up on existing loan for personal / business
|
| Eligibility |
-
Individual / Group / Family Trust / Look through Company /
Company
-
Applicants should be citizens and / or residents of New
Zealand
|
| Type of Credit Facility |
- Term Loan (TL)
-
A revolving credit facility (Over Draft) of upto 20% of the
total credit limit.
|
| Maximum Loan-to-Value Ratio (LVR) |
| |
Owner Occupied residential property LVR (%) |
Residential Investment property LVR (%) |
| For all Home Loan purposes except as below |
80% |
70% |
| Purchase of plot only |
65% |
60% |
| Purchase of apartments |
60% |
60% |
Guidelines set out by RBNZ under BS19 for quantitative
restrictions of high loan-to valuation ratio (LVR) loans to
home loan/residential property sector & BS-18 for DTI shall be
complied with. If RBNZ changes the threshold for high LVR
loans/DTI from the present level then the applicable LVR/DTI
shall change accordingly.
|
| Repayment / Period |
-
The maximum repayment period for TL allowed is up to 30
years (Including moratorium
-
Moratorium: Maximum twelve months from the date of first
disbursement for construction of residential property or
completion of construction whichever is earlier.
-
Overdraft shall become payable upon complete repayment of
original term loan account(s). Overdraft interest to be
serviced every month.
- Overdraft interest to be serviced monthly
-
Overdraft shall become payable upon complete repayment of
original term loan account(s). Overdraft interest to be
serviced every month.
|
| Security |
-
First & exclusive charge over property by way of mortgage
-
First charge over the property is to be registered in favour
of the Bank on the settlement day.
-
The property should be fully insured by covering appropriate
risks and the policy should be assigned in Bank’s name
|
| Rate of Interest (ROI) / Pricing |
-
The rate of interest will be payable at monthly rests.
-
Mortgage Insurance / Low Equity Premium: where LVR is
categorized as ‘High LVR’.
|
| Cashbacks to Home Loans |
Eligibility Criteria:
| Category |
Minimum Loan Size (NZD) |
| New Home Loan (Purchase) |
$250,000 |
| Refinancing from Other Bank |
$300,000 |
|
Top-Up of Existing Loan while takeover from other banks
|
$100,000 |
|
|
Cashback Structure
Cashback is allowed UPTO 1.00% on case-to-case basis subject to
maximum cap at 25,000.00.
|
Cashback Disbursement
-
Paid within 30 business days of drawdown into a nominated
account. Must be documented in the loan offer letter and signed by
the customer.
-
Processed only after all loan conditions have been
satisfied.
|
Clawback Conditions
Applies if:
- The loan is repaid in full.
- The loan is refinanced with another institution.
- The property is sold.
| Time Since Drawdown |
Clawback % |
| 0–12 months |
100% of cashback to be repaid |
| 13–24 months |
66% cashback to be repaid |
| 24–36 months |
33% cashback to be repaid |
| After 36 months |
No clawback applicable |
|
Exclusions
-
Bridging loans, construction loans, and commercial property
loans.
- Loans under hardship, arrears, or collections.
|
Other Stipulations
-
All cashback offers must be subjected to the full compliance
of the terms of the sanction.
|
