I would have given this a different heading e.g. “Help for first home buyers coming through generosity of second tier lenders”
Loan sharks circle home buyers
Controversial plans to put the brakes on mortgage lending threaten to push home buyers into the arms of loan sharks to top up deposits.
Experts say it could open up a market for cut-throat finance companies making a killing off desperate home buyers.
The Reserve Bank is planning to limit the amount of loans that banks can give to borrowers with deposits of less than 20 per cent, in an attempt to take some steam out of the overheating property market.
Banks have been told to prepare for the restrictions in loan-to-value (LVR) lending, and Beehive sources indicated an announcement was likely next month.
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