Tighter Loan-to-Value Ratio restrictions are one ingredient in the recipe for slowing house prices
Tighter Loan-to-Value Ratio restrictions are one ingredient in the recipe for slowing house prices
1 November 2021
From today, banks can only lend 10 percent of new loans to owner-occupiers with deposits of less than 20 percent.
That's half of what was allowed.
Independent economist Tony Alexander says there's still a lot of pent up demand in the housing market for summer, but it may be a different story next autumn and winter.
He says the combined effect of the changes, debt to income ratios and higher interest rates will flatten out the market.
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