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Home loan limits worth a try in Australia, says NZ finance minister

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Australian Broker | 21 Apr 2015, 07:00 AM Agree 0
New Zealand's finance minister says introducing home loan limits is worth a try to tame Australia's over-excited housing market
  • Craig Dadds | 21 Apr 2015, 09:14 AM Agree 0
    The issue I see with this is that like during the GFC, loans to first home buyers would become even more restricted and push them out of the market.

    The 'best risks' high income or high net worth individuals would soak up the available higher LVR loans and exclude the people the policy is aimed at helping.
  • Really | 21 Apr 2015, 09:34 AM Agree 0
    Yet another overseas person commentating on our market.
    Why not shut down the whole country while we're at it?
    The market isn't booming in all states - just parts of Syndey; & we've never had to do this in the past & don't need to do it now.
    So much for a 'housing led recovery to replace mining' they said we needed. Now they want to kill housing completely - maybe we should have one strategy, rather than 'shotgunning' 50 different ideas that all conflict with each other.
    The more involved politicians & public servants are, the worse an economy gets.
  • Brado | 21 Apr 2015, 12:22 PM Agree 0
    Maybe as a restriction on investment lending... a maximum 85% LVR would be appropriate and would still allow first home buyers into the market...
  • Michael Kent | 23 Apr 2015, 04:08 PM Agree 0
    And who cares what the finance minister of NZ thinks? Is it at all relevant what has happened in NZ as well? Two different economies, massive difference in population, exports etc etc..

    It's a simple equation. People can either afford to buy a property or they can't based on strict guidelines that exist TODAY.

    Nobody can predict what will happen in the future. Did anyone predict 9/11? Look at what that did to the world economy and life in general.

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