Harcourts Grenadier auctioneer Phil McGoldrick during an auction in Christchurch on Friday.
Hopes lifting minimum mortgage deposits will take the heat out of the property market may cause the opposite effect in Christchurch, experts say.
Loan-to-value (LVR) restrictions were removed last year to ensure there was no undue impact on borrowers or lenders during the Covid-19 pandemic, but the Reserve Bank is bringing back LVRs because it is concerned buyers are taking too many risks. Banks have already implemented the restrictions, limiting 20 per cent of new lending to owner-occupiers with deposits of less than 20 per cent. Investors now needed 40 per cent deposits or equity – though there were exemptions for new builds.