The Reserve Bank Grift #4: The Death Grip Tightens

Luring the young into the noose.

NEW ZEALAND FIRST HOME BUYERS
AT RECORD HIGH PERCENTAGE OF NEW MORTGAGES

First home buyers are at a percent record high of new mortgages, at a time house prices are pulling back from record highs and still on the way down (my opinion, 2 February 2024). The RBNZ is facilitating this by allowing high LVR (loan to value ratios) and off-setting this increased risk by initiating the “activation and calibration” of debt-to-income restrictions. The hubris of the technocrats at the RBNZ is eyewatering; they believe (or at least say they do) they have a steady hand on the tiller of the economy.

Whether they’re aiming to collapse the economy intentionally, or they’re just heavily indoctrinated doesn’t matter. The outcome will be the same.

See:

https://www.rbnz.govt.nz/have-your-say/2024/activating-dtis-and-loosening-lvrs
https://www.rbnz.govt.nz/statistics/series/lending-and-monetary/new-residential-mortgage-lending-by-borrower-type