One of New Zealand's largest home builders says the Reserve Bank's new lending restrictions are setting up a generation of renters for life. Under the stricter rules, which came into force on 1 October this year, no more than 10% of a bank's mortgage lending can be to people with home deposits of less than 20%.
GJ Gardner homes says the policy is having the worst impact on the very New Zealanders needing to get into their own houses. The organisation representing the industry, the Registered Master Builders Federation, says its figures show as many as 3000 contracts could be affected this year.
The Wireless will look at home ownership next month, including whether renting or owning is your best bet.