29 Nov 2017

Good news on way for first-home buyers?

6:44 am on 29 November 2017

First-home buyers might get some relief from lending restrictions next year.

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Loan-to-value rations are expected to ease as the growth in house prices slows. Photo: composite

The Reserve Bank is expected to signal it will ease loan-to-value ratios, or LVRs, when it releases its six-monthly update on the health of the financial system this morning.

The growth in house prices nationally is slowing, and in some parts of Auckland, prices have even been falling.

ASB chief economist Nick Tuffley said the central bank would gradually phase out loan-to-value ratios, starting about June next year, to ensure house prices didn't take off again.

Mr Tuffley said the Reserve Bank was likely to wait until the government outlined its plans to clamp down harder on property speculators before making any changes to restrictions facing investors.

The Reserve Bank six-monthly update will be released at 9am.

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