Those DTIs don’t have much of an impact today. Mortgage brokers tell me that interest rates are so high that most banks will only lend 5 – 5.5x a borrower’s income.

So that 7x limit doesn’t stop us investors from borrowing. We’re already under the limit.

So, there is no immediate impact here.

What’s the overall impact on house prices?

The bright line test change will add supply to the market. The deposit changes will bring some investors to the market. That adds to demand.

But my gut says that the extra supply will likely outweigh the extra demand for a while.

This will help the buyer’s market continue for at least the next 6 months. So, buyers will continue to have the upper hand for at least the rest of 2024.

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Andrew Nicol

Managing Director, 20+ Years' Experience Investing In Property, Author & Host

Andrew Nicol, Managing Director at Opes Partners, is a seasoned financial adviser and property investment expert with 20+ years of experience. With 40 investment properties, he hosts the Property Academy Podcast, co-authored 'Wealth Plan' with Ed Mcknight, and has helped 1,894 Kiwis achieve financial security through property investment.