Linkedin
Twitter
Online account payment
Client toolkit
Wynn Williams are one of the New Zealand's pre-eminent law firms, with a significant depth and range of resources across many legal disciplines.
Search this website
Home
Expertise
Sectors
Services
Publications
Legal articles & publications
Other publications
Firm news
Video Updates
People
About
Client Toolkit - About AML
Client care
Health & safety at Wynn Williams
Community
Your feedback
New Zealand
Doing Business in New Zealand
Investing in New Zealand
Living in New Zealand
Events
Careers
Current Vacancies
Contact us
Close menu
Search for:
COVID-19: Change in restrictions to assist house buying
Published: 6/05/2020
Join our mailing list
By: Annabel Sheppard
Download article
The Reserve Bank has now removed the general restrictions previously imposed on banks that impacted on the banks’ ability to lend especially to those in the first home buyer market.
The restrictions that were initially imposed, resulted in the banks being unable to have more than 10% of its new mortgages with deposit amounts of under 20%.
This restriction made it harder for first home buyers who were not able to save up enough for a 20% deposit enabling them to buy a house. This was particularly difficult when house prices were increasing.
Now that this restriction has been removed from banks’ lending criteria together with a potential decrease in the value of houses, hopefully it will make things easier for people to purchase a house, especially if you are a first home buyer.
The Government’s change of status from Level 4 to Level 3 does mean that people can now inspect properties as well as arrange for building and other specialist reports. Likewise, you can contract furniture removals and therefore it is now possible to settle and move house.
It is still important that if you are looking at buying a house, you look carefully at the terms of your contract to make sure that it allows for sufficient time for you to complete your due diligence and sufficient time to arrange for all steps necessary for settlement to take place and to arrange moving.
We recommend that you seek advice before signing any new agreement for sale and purchase.
Download this article in PDF format
Related articles
The impact of The Reserve Bank LVR rules for first home buyers
Keep reading...
Back to the Legal Articles & Publications
Share this page via social media
Print this page
Share this page by e-mail
Share this page on social media:
Recipient
Sender's e-mail
Captcha (anti-spam)
Enter security code:
Top
Wynn Williams Client Toolkit
Online services
Online account payment
Close menu
This page is best viewed in an up-to-date web browser with stylesheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so. The latest version of
Firefox
,
Safari
or
Google Chrome
will work best if you're after a new browser.