Govt & RBNZ adding up to $4.75b in firepower for first home buyers to push up house prices

Govt removes limits for state-insured high-LVR mortgages to first home buyers & raises price & income caps for first-home buyers; RBNZ cuts risk weighting for these first home loans too

TL;DR: The Government and the Reserve Bank have tweaked lending rules and risk weightings in ways set to add up to $4.75 billion worth of state-insured loans, taxpayer-funded grants and KiwiSaver fund withdrawals for first home buyers to jump into the housing market this spring, adding to upward pressure on house prices.

Over the last year, the Labour Go…