Quote Originally Posted by Lewylewylewy View Post
I was chatting to someone who works in housing policy, they were saying that they believe prices may keep going up for a few more years in NZ.
Only if the banks lend the money are from what I've heard the banks here are getting much tougher on leverage to income ...think at best we will have low growth for the next couple of years thanks to lower lending rates ...worst case GFC2 ...I'm sure we will see many home owners / investment properties owners finding it much harder to re-finance loans ....

3-4 years ago I had a mid sized loan with ASB during that time I also had another smaller loan in the Sharemarket ...now at the time I had taken a good hit on the share portfolio(and my personal income was down 10% etc)

Now I was looking to re-finance with ASB at the better rate + cash etc ...but to my surprise they didn't want to give me the new loan pretty much bye bye go elsewhere .... which I did ...now the property I owned was only 50% LVR so I was shocked ... but at the time without really pushing it (prob paying a higher rate etc) I had to go elsewhere...

Now how many with much higher LVR will be in the same place come re-finance time ... could well see 2nd tier lending at much higher rates fill the unwanted higher risk market .....