ANZ doesn’t expect low equity problems
The virus outbreak has sparked fears that some borrowers could be pushed into low equity situations. House prices could fall by as much as 7% in the second half of this year, according to Westpac economists.
More than 68,000 homeowners have asked for mortgage assistance during the crisis, according to 1 News. A third of those have asked to defer payments.
Those deferring interest payments will see their mortgage balances increase, putting high LVR borrowers under pressure.
Yet ANZ believes existing LVR restrictions have left New Zealand’s banks on a sound footing to weather the Covid-19 storm.
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