16 Aug 2017

Lifting LVR limit will hurt first home-buyers - ex-RBNZ economist

From Morning Report, 7:43 am on 16 August 2017

Former Reserve Bank economist Kirdan Lees is warning first home-buyers could suffer if Loan to Value ratios are lifted. He joins us with the Property Institute's chief executive Ashley Church.

Mr Lees says now is the time first home-buyers should be encouraged back into the market. 

If the Reserve Bank eases the LVRs Mr Lees says he'd be concerned about people buying property when they are less well-equipped to deal with mortgages - much like the situation before the global financial crisis.

But Mr Church says LVRs have been "a major impediment" to first home-buyers getting into the market.