Economics
No More TV and iPad Giveaways for New Zealand Homebuyers
- Banks ditch loan incentives in favor of much tighter scrutiny
- House-price gains have slowed to lowest in almost seven years
Photographer: Brendon O'Hagan/Bloomberg
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Five years ago, New Zealand banks were so keen to lend they were giving away iPads and flat-screen TVs to attract new mortgage customers. Today, the gifts are gone.
Would-be home owners are instead being scrutinized more than ever before to ensure they can service a loan, mortgage brokers say. The change in attitude is tightening the screws on the property market and raising fears that New Zealand could join Australia in seeing house prices start to slide.