Unintended consequences
The Reserve Bank yesterday announced that it has officially asked Finance Minister Bill English for the power to introduce debt-to-income (DTI) ratios for mortgage seekers.
English said the government would not grant such powers lightly as they represented a “significant policy change which has never been tested in New Zealand”.
But, within the property sector, there are concerns about exactly what sort of impact DTI ratios would have.
Property Institute chief executive Ashley Church said they have the potential to do significant damage to the Auckland housing market, and wider economy.
“These things often sound like good ideas until you start thinking through what would happen if they were actually implemented.”
Click the button below to subscribe and will have free unlimited access for a limited time to full article and all other articles on the site.
You will also be able to comment on articles on Good Returns.
![[The Wrap] What the heck is happening at the FMA?](https://goodreturns.publit.io/file/c_fill,w_300,h_200/a6c3bc06-6401-44de-96e2-286c090e132d.jpg)