Big drop in investor lending
The Government’s new tax measures, which are aimed at both local and overseas investors, came into force on October 1.
Meanwhile, from November 1, banks have been restricted in how much lending they can do to people purchasing investment properties in Auckland with less than 30% equity.
In Auckland, no more than 10% of bank lending can now go to borrowers with deposits of under 20% - although, around the rest of New Zealand, that limit has gone up to 15%.
As instructed by the Reserve Bank, banks started lending “in the spirit” of the new restrictions a couple of months prior to them coming into force.
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