There’s been an almost 40 per cent drop in the amount property investors are borrowing since tighter lending restrictions were introduced, providing more opportunities for first home buyers, a Manawatū mortgage broker says.
Reserve Bank figures show investors borrowed $13.5 billion in mortgages across New Zealand in the 12 months to September 30.
That was 37 per cent less than in the previous year, and accounted for 23.6 per cent of the total $57.1 billion lent to house buyers in that period, down from a previous market share of 32 per cent.
The dent in investment buying coincided with the introduction of a rule that investors needed to have at least a 40 per cent deposit to buy a house.
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Manawatū Property Investors Association’s Pauline Beissel said lending restrictions have played a big role in the drop in investor borrowing. But election uncertainty played a part too.
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