Australia and New Zealand Banking Group

No need for government action, the market has solved it

All too often people expect the government to solve problems, if there even is a problem.

Generally they are useless at doing anything of the sort, except if it comes to collecting taxes.

People have been clamouring for the government to DO something about foreign buyers of real estate.

Today the market solved the problem for them….if it actually is a problem. I’ve never ever heard of a bank turning away profitable business. I suspect there is not problem at all which means the banks can safely decide not to do it.

Westpac and ANZ will no longer lend to overseas-based buyers of New Zealand property – with other banks expected to follow the move to shut the door on foreign investors.

The restrictions follow moves by Australian banks to stop lending to foreign buyers of property.

Westpac New Zealand has announced that from today it will no longer lend to non-resident borrowers with overseas income.

Borrowers on temporary resident visas will only be accepted if they have both a New Zealand address and a New Zealand-based income.

ANZ has also announced restrictions that will effectively shut out most non-resident, overseas-based borrowers, including restricting lending to owner-occupied properties.

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