ANZ has put a hold on some lending to low deposit home loan borrowers following similar moves made by BNZ and Kiwibank.
The country's largest bank released a statement this morning saying it would "pause" lending to those with deposits of less than 20 per cent wanting to buy existing properties.
Ben Kelleher, ANZ managing director of personal banking, said the bank was unable to accept new home loan applications to buy existing homes where the loan to value ratio was greater than 80 per cent.
The change would affect around 10 per cent of its home loan applications.
"We want to assure customers this pause is a temporary measure and is necessary to help us meet the new LVR rules."
Customers with existing home loan approvals and pre-approvals would not be affected while the bank would continue to offer loans for low deposit borrowers undertaking new builds.
Asked how long the pause would be in place an ANZ spokeswoman said it was closely monitoring volumes to ensure it met Reserve Bank LVR requirements and hoped to start accepting greater than 80 per cent LVR applications early in the new year.
Banks have been under pressure to reduce lending to low deposit borrowers since November 1 when the Reserve Bank dropped the cap meaning banks can only lend up to 10 per cent of new loans to owner-occupiers with a deposit of less than 20 per cent.
New builds are exempt from this restriction.
ANZ's move follows that of the BNZ which last week stopped lending to owner-occupiers with less than a 20 per cent deposit wanting to buy existing properties.
Kiwibank also clamped down on lending the week before telling mortgage brokers it would stop accepting pre-approvals for low deposit lending from 5pm Friday November 12 unless there had been a specific property the preapproval had been made for.