ASB cancels pre-approved loans
ASB Bank has apologised to disappointed customers after cancelling all its low-equity mortgage pre-approvals.
The bank sent a note to brokers this morning, advising them that those hoping to borrow with a deposit of less than 20 per cent would have pre-approvals withdrawn on October 4.
It refused to say how many pre-approved loans and people were affected, citing commercial sensitivity.
ASB’s general manager product and strategy Shaun Drylie said the new Reserve Bank restrictions were to blame.
From October 1, all banks will only be allowed to lend 10 per cent of their new loans to borrowers with deposits of less than 20 per cent.
“ASB, like all New Zealand banks, has to comply with these restrictions under our conditions of registration,” said Drylie.
“We appreciate that this will be disappointing for customers who are impacted and we apologise for any inconvenience caused.”
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