RBNZ locks in guardrails to limit the next housing boom to income growth

Doing the maths: Most home buyers will now only be able to borrow six times their income (7 times for investors). Photo: Lynn Grieveson / The Kākā

TL;DR: The Reserve Bank has confirmed plans to apply Debt To Income (DTI) multiple limits on investors and owner-occupiers from July 1. While price growth and lending at high multiples are currently low, the new limits are unlikely to have much impact. They are designed to slow the market down when interest rates start falling.

Meanwhile, fresh evidence emerged this morning of the fraud and abuse rife in our ‘churn and burn’ economy fed by low-wage and temporary migrant workers.

(Paying subscribers can see and hear more detail and analysis below the paywall fold and in the Dawn Chorus podcast above. We’ll open it up for public reading, listening and sharing if we get over 100 likes)

Here’s my top six ‘pick ‘n’ mix’ of links to news, analysis and opinion articles, announcements, official reports, reviews and research in the last day or so to 9:46 am on Wednesday, May 29:

1: New DTI limits and easier LVRs locked in for July 1