This move by the RB is total nonsense.
It blows a hole through the whole idea and is even more unfair than ever.
Why should people with small deposits be forced to buy new properties usually out in the sticks when used houses could well be the same price (no GST) or even cheaper?
My double shot interview only last week on this site made the very point and I was spot on if I do say so myself.
This is an idea that has the wheels falling off it already.
Reserve Bank backs down on loan rules
Chris Hutching |
December 10, 2013
The Reserve Bank has tweaked its loan-to-value policy on residential lending to exempt new construction.
It follows weeks of lobbying from the construction industry warning of falling work levels, job losses and soaring house prices exacerbated by low supply.
New residential construction loans will now be exempt from the loan-to-value restrictions introduced from 1 October, Reserve Bank deputy governor Grant Spencer says.