How new lending limits may impact NZ banks

New limits on mortgage lending could mean property prices are unlikely to unleash again if interest rates drop. How it could impact banks mortgage books.
00:00 - Intro
00:32 - Property prices & mortgage limits
01:58 - Interview with BNZ's James Leydon
03:53 - How limits work
04:37 - Bank earnings impact
06:37 - BNZ's mortgage book
08:20 - Interest rates
09:34 - Property investors
11:46 - First home buyers
14:06 - Mortgage demand
16:12 - Real rates
17:36 - Outro
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Videography / Editing | Cameron Pitney, Ben Dickens
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[@MarketsWithMadison]

Interested to hear your thoughts on these new restrictions just imposed by the Reserve Bank. It follows banks and borrowers making the most of the low interest rate era with high debt to income loans in 2021. I'll cover this again once we have more data, so let me know if there's any questions you want answered. Madison

[@willryan5508]

Can you ask them how we can have an efficient market when the price of money itself is ultimately set by a handful of people? We accept a “free market” sets prices of everything from houses to food based on demand and supply. However the currencies we use are priced by boards of very few people from the FMOC to the RBNZ. Is that not a form of price fixing to set the OCR in a similar manner to how the USSR set the prices of hundreds of goods such as bread and milk? If so, the price calculation problem of socialism, is applicable to how we are setting the most important price in a “free market”, that being the price of money itself. Cheers

[@cocobeans-iz3ff]

Great questions! 👍

[@jameslaughton7479]

Would love to see anything on the NZ CBDC being created in preparation for a roll out. The honest pros and cons. And how we will be assured our freedoms won’t be degraded through this seemingly forever increasing list of strict regulation and control.

[@MarketsWithMadison]

Onto it James! Coming soon.

[@Hunty49]

NZ CBDC is all about control. If you do something the government doesn't like, eg: protest, not take a vaccine, post a comment, buy something, they will block it and threaten to take away your freedom to spend YOUR money. Plus if businesses don't follow their ESG rules, people can't transact with you. All pros for the government but cons for you.

[@wayward79]

2:04 Home Leading General Manager or Home Lending General Manager? 🤭

[@MarketsWithMadison]

Damn I didn't spot this in the final edit check! Should obviously say lending

[@wayward79]

@@MarketsWithMadison thats ok, I'll give you a hall pass for this one 😉 Keep up the great work 💯🙌

[@communistgreyman2078]

I don’t understand what she says however she’s smoking.

[@simianwarthog]

At some place on your thumbnail you could indicate that this is NZ. I nearly missed it.

[@MarketsWithMadison]

Added it to the title! Thanks for watching.