INDUSTRY UPDATE

INDUSTRY UPDATE: With an OCR on hold and a current interbank mortgage war that is resulting in record low rates, it’s no wonder October numbers just released have resulted in an increase in the number of sales. Alongside this, the Reserve Bank have flagged their intention to review the current Loan to Value Ratios. Currently, banks can only lend 15% to new customers with less than a 20% deposit and 5% of banking to those with less than 35%. 
Our observation is that in real terms there is no shortage of homes available, rather sales volumes have been and still are limited by bank funding criteria. Consequently, these two factors together should have a positive impact on market sentiment and ultimately activity.

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