Brendan Burgess
Founder
- Messages
- 52,401
My submission is attached. Here is the summary
Contents and summary
The economic outlook is uncertain so it pays to be careful
Reckless borrowing hurts the borrowers themselves most of all
The Central Bank is right to impose limits as borrowers cannot be relied upon to borrow prudently and lenders cannot be relied upon to lend prudently
This is the right time to introduce the lending restrictions
The limits should be phased in
The international evidence supports an LTV limit of 80%
Account must be taken of unsecured debts
The LTV limit and the LTI limit should be integrated
While the current severe shortage of housing persists, it may be necessary to allow exceptions for new houses
The proposed limits will, on balance, help first-time buyers
Until government policy is altered to facilitate first-time buyers, it may be necessary to allow them to borrow 85% LTV
The high cost of building new houses is due to government policy. The Central Bank should not allow reckless borrowing to compensate for bad government policy
The government should make it easier for first time buyers to save the deposit
A person trading up to a second-hand house should have an absolute limit of 80% LTV
Mortgage Indemnity Insurance should not be allowed to facilitate reckless borrowing
Residential Investment Properties
A note on mortgage terms and interest-only mortgages
Some miscellaneous suggestions
Contents and summary
The economic outlook is uncertain so it pays to be careful
Reckless borrowing hurts the borrowers themselves most of all
The Central Bank is right to impose limits as borrowers cannot be relied upon to borrow prudently and lenders cannot be relied upon to lend prudently
This is the right time to introduce the lending restrictions
The limits should be phased in
The international evidence supports an LTV limit of 80%
Account must be taken of unsecured debts
The LTV limit and the LTI limit should be integrated
While the current severe shortage of housing persists, it may be necessary to allow exceptions for new houses
The proposed limits will, on balance, help first-time buyers
Until government policy is altered to facilitate first-time buyers, it may be necessary to allow them to borrow 85% LTV
The high cost of building new houses is due to government policy. The Central Bank should not allow reckless borrowing to compensate for bad government policy
The government should make it easier for first time buyers to save the deposit
A person trading up to a second-hand house should have an absolute limit of 80% LTV
Mortgage Indemnity Insurance should not be allowed to facilitate reckless borrowing
Residential Investment Properties
A note on mortgage terms and interest-only mortgages
Some miscellaneous suggestions