Regional buyers not unfairly disadvantaged: Alexander
There has been a lot of commentary since the introduction of the rules about their impact on smaller housing markets, many of which are not experiencing inflation anywhere near Auckland’s.
Banks must limit their lending to borrowers with a deposit of less than 20% to no more than 10% of new home loans.
But Alexander said those complaints missed the point of the restrictions.
“[The rules] were not driven by specific concern about the Auckland housing market and there is nothing inequitable about regional housing markets suffering because of the rules. I state this because the Reserve Bank did not primarily introduce the rules in order to stem house price inflation whether that be from Auckland, Christchurch, Ashburton or Riverton,” he said.
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