We would not provide a loan on a house with these restrictive covenants

One of New Zealand’s largest banks made the following comments after reviewing the restrictive covenants:

  • If you move to Wellington and you cannot rent the house then you will be forced to sell it.
  • If you cannot make the payments  and we foreclose on the property how are we going to sell the house?
  • We would not provide financing for these houses because the resale market is too small.

Are lenders being told about the restrictive covenants?


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