RBNZ plan to restrict low equity mortgages will help property investors, maintain rising prices

Thu, 01 Aug 2013

By Tina Morrison Aug 1 (BusinessDesk) - The Reserve Bank’s plan to restrict the number of low equity mortgages will hobble first home buyers while helping property investors, ensuring house prices keep marching higher, according to Westpac Banking Corp economists. The central bank, concerned about spiralling house prices causing financial instability, is expected to bring in new loan-to-value ratio tools to force lenders to limit low equity borrowing as early as this month. The bank may say only 12 percent of new mortgages can be given to bo...

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