Last year in March 2020 the Reserve Bank cut interest rates by .75% and removed the ‘Loan to Value Ratio’ restrictions in order to assist first time buyers. This had a positive effect on the sales figures and market value.
The current plan from the Reserve Bank is to reduce the amount of low deposit lending including imposing a debt to income restriction. Designed to ‘cool’ the currently ‘hot’ market, we may see a fall in sales but it remains that property is in high demand all over New Zealand.
The government and the Reserve bank are working toward an increase in affordability for first time buyers and at the same time dissuade investors.