28 Feb 2013

Larger house deposit to be required for mortgage

5:41 am on 28 February 2013

A Government proposal to require people buying homes to have a larger deposit for a bank mortgage could be in place by the middle of this year.

The aim is to dampen the overheated Auckland property market, though it would be up to the Reserve Bank to decide when and how the rules would be applied.

The Reserve Bank could also introduce loan to value ratios, which effectively limit the amount banks can lend.