Lending rules’ easing good for firsthome buyers: Govt
WELLINGTON: The easing of the Reserve Bank’s home lending restrictions will make it easier for firsthome buyers to secure a house, the Government says.
National’s housing spokeswoman, Judith Collins, said the changes to the loantovalue ratio (LVR) restrictions were an acknowledgement it was ‘‘pretty hard to get into a house’’.
Yesterday, the central bank eased LVR restrictions on both owneroccupiers and investors.
From January, banks will be allowed to lend 20%, up from the current level of 15%, of their new loans to owneroccupiers with a deposit of less than 20%.
The Reserve Bank introduced high LVR restrictions in October 2013 to cool the property market.
Speaking to media, Reserve Bank Governor Adrian Orr said the bank was ‘‘some way away’’ from further changing the lending limits.
Any changes to the lending limits depended on the future behaviour of banks, he said.
Housing Minister Phil Twyford said changes to LVRs showed the Reserve Bank had acknowledged the housing market had stabilised.
The move to ease LVRs mad things ‘‘a little bit easier for first home buyers to get into the market’’.
Asked if the change would mean it would be easier for people to get into KiwiBuild homes, he said perhaps.
As KiwiBuild homes were new builds, they would be exempt from LVRs anyway, he added.
Finance Minister Grant Robertson said the easing of the rules would open up opportunities for some homeowners, ‘‘particularly firsthome buyers’’.
Ms Collins was not as optimistic as Mr Twyford and Mr Robertson.
She called the Reserve Bank’s decision ‘‘interesting’’.
‘‘It’s an acknowledgement that it’s pretty hard to get into a house, in particular to be able to afford a house, unless you have a very substantial deposit or you have the bank of mum and dad to help you.’’
She said easing of the LVRs was an acknowledgement the sector was quite delicate, particularly in terms of getting people into homes.
Asked if she would have liked to see the Reserve Bank go further, she said that was a decision for the Reserve Bank.
‘‘One of the things National Party always does is try and leave the experts to do their job.’’ — NZME