For a long time, the barrier to growing a property portfolio in New Zealand has been a steep one. Traditionally, if you wanted to buy an existing residential investment property, you needed a 30% deposit. For many investors, this meant waiting years to build up enough equity or cash to make their next move.

Everything just changed.

We have received a rare and exclusive update from one of New Zealand’s major “Big Four” banks. Effective immediately, the doors have opened for residential investment lending with as little as a 15% deposit (85% LVR).

This Isn’t Just for New Builds

Unlike many previous lending incentives that were restricted to “New Build” properties, this update applies to standard residential properties. Whether it’s a 1950s bungalow or a modern townhouse, the 15% deposit rule now applies.

The Power of 15%: Doubling Your Reach

To understand why this is a “market-shifting” moment, look at how this impacts your actual buying power.

The Scenario: You have $150,000 of usable equity in your home or current portfolio.

• Yesterday (30% Deposit): You were capped at a purchase price of $500,000.
• Today (15% Deposit): That same $150,000 could allow you to purchase a property up to $1,000,000.

By halving the deposit requirement, the bank has effectively doubled your purchasing capacity.

The Fine Print: What You Need to Know

As with any rare banking opportunity, there are specific criteria you must meet to qualify for this 85% LVR lending:

• DTI (Debt-to-Income) Ratio: Your total debt-to-income ratio must be under 7.
• Live Deals Only: This is the most critical factor. The bank is not issuing pre-approvals for this specific pool of funds. To apply, you must have a “live” application—meaning a signed Sale & Purchase Agreement or a completed Auction Pack ready for submission.
• Limited Capacity: This is a first-come, first-served opportunity. Once the bank reaches its internal lending cap for this product, it will be withdrawn without notice.

Why You Need an Adviser Right Now

Because the bank is not offering pre-approvals, the margin for error is zero. You cannot afford to go into an unconditional deal or an auction without knowing exactly where your numbers sit.

At Guardian Smith, we specialize in navigating these high-stakes windows of opportunity. We can run the math on your current equity, calculate your DTI, and ensure that when you find the right property, your application is “bank-ready” the moment you sign the contract.

Don’t Wait on the Sidelines

The window for 15% investment deposits is open, but it won’t stay open forever. If deposit constraints have been holding you back from growing your portfolio, now is the time to act.

Want to see if the numbers work for your next move? Contact Mikey Smith or the Guardian Smith team today to book a strategy session. Let’s get your equity working harder for you.