Consumers might not be happy with increasing loan restrictions, but economists think that restrictions are required to avoid any market downturn. According to them, restrictions play a vital role in preventing both banks and borrowers from having adverse effects on the economy.
The Reserve Bank has announced that it is coming up with new set rules when it comes to lending rules. The novel rules will be introduced from next week in which restrictions will be levied on low-deposit home loans.
The move is being made in order to maintain financial stability. However, builders are of the view that the move will disrupt their business. It is said that construction of new homes will get reduced.
ASB bank is withdrawing its loan pre-approvals for buyers in a surprising move. This is done to avoid buyers who have less than 20% deposits.
The bank says that the new restriction has come from the Reserve Bank on how much banks can lend from the next month.
The massive task of preventing the banking/financial sector from pushing the U. S. economy into recession again is still incomplete, even 5 years after the collapse of Lehman Brothers.
As per latest report by surveyors, it has been revealed that the Bank of England must put limit on house price, so that it should not increase up to 5% per year.
Royal Institution of Chartered Surveyors (Rics) suggested that this 5% annual increase must be controlled, so that people can easily afford the purchase of their houses and property.
Borrowers have been put on notice by the Reserve Bank, saying a full percentage of interest rate rises next year and as much again in 2016. Yesterday, it released the projected interest rate track in the September monetary policy statement. It is about 50 basis points higher than what it was three months ago.
As per recent reports, it has been unveiled that the New Zealand dollar is trading well. It is trading higher now.
It has been said that the rise has been witnessed after the statement of the Reserve Bank of New Zealand. The statement is said to have led the New Zealand dollar to touch US$0.8152.
Cash rate has been kept steady by Australia's central bank at a record low of 2.5%. The news has come on Tuesday given it has only a month since it last eased policy and a Federal election is just days away.
Recent announcements coming from the Reserve Bank are talking about some exemptions lift home chances. The experts from the department talk about a new house loans policy which they say could be helpful for the first-time buyers
The Reserve Bank Governor, Graeme Wheeler has declared restrictions on high loan-to-value ratio (LVR) housing mortgage loans. The banks are to follow these recently announced restrictions from October 1.
RBA has cut its rate to record low today and the banks and mortgage lenders very quickly passed out the new rates.
According to official reports, the RBA has made a cut in its interest rates by 25 basis points. This is for the second time in this year that the cuts have been made by the Reserve Bank Authority.
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