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?