Ahhh … remember this?
— Morning Report (@NZMorningReport) April 28, 2016
Loans for first homes jump 43% in 2 years
The amount people are having to borrow for their first home has increased 43 percent in the last two years.
Reserve Bank figures show the average loan to a first-time buyer in October 2014 was $273,000. By last month, that had risen to $390,000.
The Labour Party is warning that young New Zealanders are carrying extraordinary levels of debt and are dangerously exposed to rising interest rates.
Leader Andrew Little said with a debt burden of $390,000 it did not take much of an upward change in interest rates to put real pressure on household budgets. …
Labour’s press release is here.
Oh and those interest rates? Heading up already:
Two more main-line banks raise more mortgage rates, returning for extras after hikes earlier in the month (and earlier in the week)
Mortgage rate rises are spreading to other banks quickly now. And some are coming back for rapid-fire repeat raises.
ASB is raising rates again today having previously raised them on November 5.
BNZ is back raising mortgage rates as well. In this cycle, they first raised them on November 8, and then again on November 21. …
A lot of people are going to get hit hard.