New Zealand Housing Slump May Be Tempered By Eased Lending Rules
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New Zealand’s housing downturn may be tempered by an easing of mortgage lending restrictions that could fuel borrowing.
The Reserve Bank is considering allowing lenders to make more low-deposit home loans from June 1, it said Wednesday in Wellington. That should lead to more credit growth than otherwise would have been the case, potentially reducing the extent of house-price declines, said Sharon Zollner, chief New Zealand economist at ANZ Bank in Auckland.