Auckland’s auction ‘fever’ is apparently about to cool now the Reserve Banks home loan restrictions have come into force.
When buying at an auction, the sale is unconditional. But this is more difficult, particularly for first home buyers, without having a pre-approved loan. But following the new restrictions, banks are moving away from pre-approved loans, which means auctions are out for many first home buyers reports TVNZ News.
The end result will be less auctions, predicts experts.