Loan-to-value restrictions haven’t done much to reduce the likelihood of a house price crash, one bank economist says.
ASB chief economist Nick Tuffley said the rules seemed to have had some success in improving financial stability but had not materially reduced the probability of a house price overshoot that would leave the market vulnerable to a sharp correction.
Banks have sharply reduced the amount of lending they do to borrowers with a deposit of less than 20% - something that the Reserve Bank had highlighted as a risk in the event of a downturn...MORE»
Tuesday, March 4th, 10:13AM
Tuesday, March 4th, 6:00AM 1 comment
Would-be buyers who have given up hope of getting into the property market because of the loan-to-value restrictions may be using their saved deposits to splurge on big-ticket items, the latest KPMG Financial Institutions Performance Survey says.MORE»
Most borrowers will feel the impact of Official Cash Rate rises not long after they start, the latest Reserve Bank figures reveal.MORE»
Banks low equity loan volumes are nowhere near the maximum allowed by the Reserve Bank’s speed bump restrictions.TideMORE»
Mortgage brokers can play a vital part in the market at the moment, helping people with small deposits understand what they might be able to borrow, one adviser says.MORE»
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Kiwibank’s changes to the way it insured low-deposit loans meant it was already pulling back before the Reserve Bank rules forced it to, its chief executive says.MORE»