CCCFA bad law but huge growth in credit is the bigger picture

The bigger question was a gigantic splurge in mortgage lending over the last two years.

The comments came from the independent economist Cameron Bagrie, in a webinar organised by Financial Advice New Zealand.

He said in the last 12 months, total home lending had increased by $33 billion, or $2.5 billion per month. This was a lot higher than average, and way ahead of the growth in household income.

“An 11% rise in housing debt in 12 months is not normal, it is not sustainable. Income growth has been about 6%. Now that makes absolutely no economic sense to me.