News | Politics
22 Aug 2017 7:48
NZCity News
NZCity CalculatorReturn to NZCity

  • Start Page
  • Personalise
  • Sport
  • Weather
  • Olympic Games
  • Ski Report
  • Finance
  • Shopping
  • Jobs
  • Horoscopes
  • Lotto Results
  • Photo Gallery
  • Site Gallery
  • TVNow
  • Dating
  • SearchNZ
  • NZSearch
  • Crime.co.nz
  • RugbyLeague
  • Make Home
  • About NZCity
  • Contact NZCity
  • Your Privacy
  • Advertising
  • Login
  • Join for Free

  •   Home > News > Politics

    Call to get rid of home deposit rule

    The 20 per cent deposit rule for home buyers is cutting first-home buyers out of the Auckland market and needs to go, a real estate agent says.


    First-home buyers in Auckland on good incomes can't get a house because of a 20 per cent deposit requirement, a real estate agent says.

    "We've got young couples in Auckland earning a quarter of a million dollars between them, who could easily service a mortgage - but because of high rents and living costs, they struggle to save a big deposit," Century 21 New Zealand national manager Geoff Barnett says.

    He wants the 20 per cent deposit requirement for first-home buyers scrapped for lower-valued properties, which he defines as anything up to $750,000 in Auckland.

    His comments follow similar calls from Barfoot and Thompson director Peter Thompson. On Friday REINZ also called for a review of loan-to-value restrictions imposed by the Reserve Bank of New Zealand two years ago.

    "It's over $200,000 in deposit just to buy the average Auckland home," Mr Barnett said.

    The Reserve Bank introduced lending restrictions to help cool Auckland's housing market, but the measures need to be reviewed as property prices normalise, according to Mr Barnett.

    "Many first-home buyers should be exempt from the blanket high deposit requirements. They should still pay a deposit and their savings history and ability to service the mortgage must still be heavily scrutinised, but it's time they got a fairer go."


    NZN




    © 2017 NZN, NZCity


     Other Politics News
     22 Aug: AA wants 10,000 park and rides urgently
     21 Aug: Another campaign shock as Dunne quits
     21 Aug: Dunne quits, election now 'drag race': PM
     21 Aug: Labour promises Auckland to Tauranga rail
     21 Aug: Govt puts up $3m for teachers in Auckland
     20 Aug: Colin Meads, New Zealand rugby union legend, dies aged 81
     20 Aug: Ardern swamped at Labour campaign launch
     Top Stories

    RUGBY RUGBY
    Wallabies staying stubbornly optimistic More...


    BUSINESS BUSINESS
    Quitline offers value for money: study More...



     Today's News

    International:
    Total solar eclipse: The best photos as Moon casts swathe of US into darkness 7:47

    Living & Travel:
    Car catches fire in Queenstown crash 7:47

    Entertainment:
    Chloe Grace Moretz has lost her second dog in the space of a month 7:46

    Business:
    Quitline offers value for money: study 7:37

    Rugby:
    Wallabies staying stubbornly optimistic 7:27

    Politics:
    AA wants 10,000 park and rides urgently 7:17

    Entertainment:
    Kris Jenner finds the idea of Kylie Jenner marrying Travis Scott hilarious 7:16

    Rugby League:
    Cartwright queries Titans' NRL board 7:07

    Entertainment:
    Pink's first kiss was at a graveyard 6:46

    Business:
    Club comments disappointing: Maloney 6:27


     News Search






    Power Search


    © 2017 New Zealand City Ltd