Staunch opposition to DTI proposal

The Reserve Bank has released the submissions it received on its public consultation on DTIs and the majority come down firmly against the proposal.

The NZ Bankers Association believes the Reserve Bank’s consultation paper does not establish that the benefits of a DTI would outweigh the costs and that more analysis is required.

It says DTIs might create a number of unintended consequences for the housing market and the economy and that there are sufficient serviceability rules and processes already in place to assess affordability and respond to market conditions.

The big banks’ submissions on the prospect of a DTI all support this view.