Singapore in June lowered its DTI mortgage cap to 60 percent. Concerned about rising household debt, the central read more bank estimated the proportion of vulnerable borrowers could rise to 10-15 percent if mortgage rates – well below 2 percent a year – were to rise by 3 percentage points. With house prices at record highs, New Zealand is tightening LTV ratios rather than raising interest rates. From October, no more than 10 percent of new home loans can go to mortgages that exceed 80 percent of a property’s value.
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Don’t Ignore the Sobering Facts on Housing