Home loan affordability worsens in first month of LVR limit; banks much more selective on loan deals
November 26, 2013
Home loan affordability worsened again across most of New Zealand in October as house prices continued rising despite the Reserve Bank imposing lending restrictions from October 1.
Surveys show a significant slowing of low deposit lending and first home buyer activity through October, but it has yet to flow through into a slowdown in house price inflation.
Median house prices rose in 19 out of 24 regions and hit record highs in Auckland, Hamilton and Canterbury.
The Roost Home Loan Affordability reports show affordability worsened in 12 out of 24 regions as small income increases in some areas only partially offset the effects of higher house prices.