New Zealand Labour Party

Banks restrict lending to offshore buyers while Govt refuses to acknowledge problem

Major banks are restricting lending to offshore buyers and local investors while the National Government refuses to admit there’s a problem, says Labour’s Finance spokesperson Grant Robertson.

“Westpac has today announced it will no longer lend to non-resident borrowers with overseas income to reduce risk. And last week ANZ announced tightening of lending to investors.

“This shows the banks are acknowledging the housing market is out of control and foreign speculators are playing a big role so they are limiting their exposure if it falls over.

“Meanwhile National has refused to even acknowledge there’s a housing crisis and has its head in the sand over the involvement of foreign buyers in the market.

“It’s the goal of a bank to make money from mortgage lending. If they are pulling back from lending on New Zealand housing, then there really is a crisis in the market.

“What is needed is Labour’s policy that would ban foreign speculators from buying existing homes.

“National has stopped listening to middle New Zealand’s concerns the Kiwi Dream of home ownership is falling apart. The only solution is a change of government,” says Grant Robertson.