NZ property market slows

Loan restrictions on the level of low-equity home loans and rising mortgage rates are starting to have an effect on New Zealand's booming property market according to the Reserve Bank.

The Reserve Bank's limits on the level of high loan-to-value ratio (LVR) mortgages have influenced annual house price inflation which slowed to 8.8 percent in January from a pace of 9.7 percent in October. Limits on home lending on deposits of less than 20 percent were introduced in October last year.

Loan restrictions on the level of low-equity home loans and rising mortgage rates are starting to have an effect on New Zealand’s booming property market according to the Reserve Bank.

The Reserve Bank’s limits on the level of high loan-to-value ratio (LVR) mortgages have influenced annual house price inflation which slowed to 8.8 percent in January from a pace of 9.7 percent in October. Limits on home lending on deposits of less than 20 percent were introduced in October last year.

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