Strong Disapproval of Ban on Low Home Deposits (24th May 2013)
Nearly 40% of New Zealanders would disapprove of any Reserve Bank move to require home buyers to have a minimum 20% deposit, a HorizonPoll survey finds.
Opposition to the idea of requiring a 20% deposit for bank mortgages runs strongly among those aged 18 to 54 year olds, and middle to higher income households. By occupational group, disapproval is highest among labours, teachers, nurses, police and other trained service workers, business managers and executives, and homemakers not otherwise employed. Approval is highest among those aged 55+ and retired superannuitants.
Many complained that higher deposit requirements would delay or end their intention to buy a house. Others complained they were not on a level playing field; that overseas buyers were borrowing at lower interest rates offshore and driving prices up on the New Zealand market.
The research survey finds there is majority support for the Reserve Bank's move to require the four largest banks (ANZ, Westpac, ASB and BNZ) to hold greater reserves to cover any default by home owners with high loan to value ratios.