PHOTO: Photo credit: RNZ / Claire Eastham-Farrelly
The Reserve Bank’s restrictions on home loans kick in from Monday but those in the industry don’t believe it will do much to cool the market.
Loan-to-value ratios (LVR) were temporarily lifted in the wake of COVID-19, but a runaway housing market has forced the Reserve Bank to reintroduce them.
Meanwhile, some buyers have been rushing to get their mortgage applications in, to beat the changes.
Demand for mortgages has been through the roof since the end of lockdown last year.
The chief executive of NZ Home Loans, Aaron Skilton, said their 75 businesses across the country have been inundated, with record levels of activity.
“That means we have settled over $1 billion in home loans in the 6 months to December – a record for us.”
Investor activity has roughly doubled over the year and first-home buyer demand is up 30 percent, he said.
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