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RBNZ eyes on property investor loans
The Reserve Bank says it's now mulling three ways mortgage loans to residential property investors could be defined as it works to establish a new asset class for such lending within trading banks' capital adequacy requirements. The three possible alternative under consideration include: · if the mortgaged property is not owner-occupied; or · if servicing of the mortgage loan is primarily reliant on rental income; or · if servicing of the mortgage loan is at all reliant on rental income. "International evidence suggests that default rates and loss rates experienced during sharp housing market downturns tend to be ... (full story)