Prime Minister designate Chris Hipkins on Sunday said that New Zealanders should not be on a six-figure salary to buy a house.
Addressing a press conference on Sunday at the Beehive in Wellington alongwith Carmel Sepuloni, Hipkins said: “we will continue to tackle the housing crisis , so that every New Zealander will have a place to call home.”
Real Estate sector, like any other branch of New Zealand economy, plays a very important role in the economic and social growth of New Zealanders. Thousands of families in today’s New Zealand are longing to own a house. While talking to this scribe, several first home buyers said they were very much capable of paying the mortgage as they already paying monthly rents.” However, one of the major issues they are facing is Debt to Income (DTI) Ratio.
According to RBNZ guidelines, the banks are calculating new mortgages on a 1:6 DTI.  It is assumed that if a DTI is set at seven it would not stop any First Home Buyers from buying.
As Mr Hipkins showed his concern that New Zealanders should not be on a six-figure salary to buy a house, the reality is different. For any one with a $90,000 annual total family income, buying a house at present is seemingly next to impossible. Chris Hipkins should talk with RBNZ to discuss how his promise to facilitate First Home Buyers can be fulfilled.