First-Time Home Buyers Penalised by New Zealand Government Proposals
New restrictions on the level of loan-to-value for home loans in New Zealand are expected to push first-time homebuyers out of the market.
The NZ Government is currently considering new proposals to control the high loan-to-value mortgages in an attempt to control the excesses seen in the past.
The new proposals will be subject to public consideration and will be released early next month.
Helen O’Sullivan, CEO of the Real Estate Institute said that she wonders how these proposals can actually be implemented because there are big concerns if all home buyers are treated the same.
It is inappropriate to treat all homebuyers as the same, and first-time homebuyers are those who are more likely to need high loan-to-value home loans, O’Sullivan said.