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Property Institute slams RBNZ 'u-turn'

Property Institute of New Zealand Chief Executive, Ashley Church, is asking the Government to consider removing the Reserve Bank’s ability to influence housing policy in light of what he describes as ‘a politically motivated response to house price inflation’.

Tuesday, July 19th 2016, 2:00PM

by The Landlord

Ashley Church

His comments follow today's Reserve Bank announcement that property investors will require a 40 per cent deposit to buy property anywhere in New Zealand from September 1.

Mr Church said the announcement was directionless and smacks of political expediency.

“This is essentially a u-turn. Two weeks ago we were told that these measures would be introduced ‘at the end of the year’. Now they’re suddenly sufficiently serious that they need to be introduced in 6 weeks’ time? What’s changed?”

“Could it be that last week’s serve from the Prime Minister has spurred the Reserve Bank into action?”

Mr Church said that ‘even a whiff’ of political consideration in the banks announcement undermined the entire basis of the Reserve Banks role which was to act as an ‘independent referee’ for monetary policy.

“If the Reserve Bank can now be politically influenced it calls into question the entire basis of its existence and the terms of the Reserve Bank Act”.

“There was a time when the Reserve Bank could be trusted to act above politics, in the best interests of the nation. If that’s no longer the case – perhaps the Government should consider withdrawing some of the powers it has given the Bank – or even reviewing the Act”.

Mr Church said today’s announcement would make little difference to house price inflation.

“Many investors will already have close to, or over, 40% equity and this will be little more than a slight speed bump”.

Mr Church repeated earlier calls for the introduction of decisive and broad ranging policies to address the housing crisis.

“One-off, incremental and politically motivated, announcements won’t cut it. We have a runaway market and a generation of kids who can’t, now, afford to get into a home of their own. We need a comprehensive set of smart measures that send a clear signal to private developers, redirect investor activity into the building of new houses, and give our young people a fighting chance to buy their first home."

« Reserve Bank calls for changes to investor LVRs Westpac cuts off investor lending »

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Lender Flt 1yr 2yr 3yr
AIA 5.35 4.49 5.25 5.55
ANZ 5.54 5.15 5.85 6.15
ANZ Blueprint to Build 2.78 - - -
ANZ Special - 4.55 5.25 5.55
ASB Bank 5.35 4.49 5.25 5.55
Avanti Finance 5.45 - - -
Basecorp Finance 6.45 - - -
Bluestone 5.29 7.49 7.59 -
BNZ - Classic - 4.55 5.25 5.45
BNZ - Mortgage One 5.55 - - -
BNZ - Rapid Repay 5.55 - - -
Lender Flt 1yr 2yr 3yr
BNZ - Std, FlyBuys 5.55 5.35 5.94 5.99
BNZ - TotalMoney 5.55 - - -
CFML Loans ▲6.45 - - -
China Construction Bank 5.50 5.40 6.14 6.40
China Construction Bank Special - 4.45 5.19 5.45
Credit Union Auckland 5.95 - - -
First Credit Union Special 5.85 4.70 5.20 -
Heartland Bank - Online 4.00 3.85 4.70 4.84
Heretaunga Building Society 5.95 4.80 5.50 -
HSBC Premier 5.49 4.39 5.15 5.39
HSBC Premier LVR > 80% - - - -
Lender Flt 1yr 2yr 3yr
HSBC Special - - - -
ICBC 5.25 ▲4.29 ▲5.09 ▲5.35
Kainga Ora 5.43 4.57 5.58 5.85
Kainga Ora - First Home Buyer Special - 2.25 - -
Kiwibank 5.00 5.55 6.19 6.39
Kiwibank - Offset 5.00 - - -
Kiwibank Special 5.00 4.55 5.19 5.39
Liberty 4.84 - - -
Nelson Building Society 5.95 4.95 5.85 -
Pepper Essential 3.44 - - -
Resimac 4.59 5.60 6.16 6.29
Lender Flt 1yr 2yr 3yr
SBS Bank 5.29 4.69 5.35 5.49
SBS Bank Special - 4.19 4.85 4.99
Select Home Loans 4.09 4.29 4.86 5.09
The Co-operative Bank - First Home Special - ▲4.19 - -
The Co-operative Bank - Owner Occ 5.45 ▲4.29 5.19 5.45
The Co-operative Bank - Standard 5.45 ▲4.79 5.69 5.95
TSB Bank 5.59 ▼5.14 ▼5.79 6.15
TSB Special 4.79 ▼4.34 ▼4.99 5.35
Unity 5.65 4.80 5.50 -
Wairarapa Building Society 5.24 4.55 5.20 -
Westpac 5.54 5.09 5.79 6.09
Lender Flt 1yr 2yr 3yr
Westpac - Offset 5.54 - - -
Westpac Special - 4.49 5.19 5.49
Median 5.45 4.55 5.25 5.52

Last updated: 19 May 2022 10:42am

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