A potential rise in lending limits is not expected to quench the thirst of property investors around the country.
The Reserve Bank has warned it may impose higher loan-to-value ratio restrictions on property investors to mitigate a hot housing market.
Current restrictions have investors in Auckland providing deposits of 30 per cent, and investors elsewhere in the country are required to provide a deposit of 20 per cent.
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Economist Shamubeel Eaqub says that a hike in the loan-to-value ratio restrictions would be action “at the margins” of a housing crisis.