Further mortgage restrictions coming as house price growth continues

A Property and Build article.

The Reserve Bank of New Zealand has announced plans to tighten mortgage lending standards, with the latest CoreLogic data showing nationwide property values increased by 1.8% over July.

Property price growth has not slowed since June, which recorded the same 1.8% increase. While this is down on both May (2.2%) and April (3.1%), CoreLogic NZ’s Head of Research Nick Goodall says a market this size can take some time to slow.

“In order to prevent this problem from getting worse, the Reserve Bank will be consulting on a proposal to further reduce the amount of high LVR lending to owner-occupiers,” Deputy Governor and General Manager for Financial Stability Geoff Bascand says.

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