The NZ Herald has a contradictory article on homes and building in today’s edition.
Builders expect a rush of first-home buyers planning to build new houses following the Reserve Bank’s announcement they will be exempt from new mortgage lending rules.
Two months after the limits were introduced, the bank said yesterday it would exempt new home building from them after consulting groups such as the Registered Master Builders Federation and the banks.
The building association said that the rules, which restrict lending to borrowers with less than a 20 per cent deposit to 10 per cent of a bank’s total, had resulted in cancelled orders for new homes and a 30 per cent drop-off in inquiries.
The change is likely to push more new homeowners to the city fringes where more land is available for building. Construction companies were yesterday predicting a surge in activity levels.
Reading this it strikes me as truly odd that the Herald would publish contradictory information only days apart.