Labour’s legacy of mortgage misery

The New Zealand National Party

Kiwi mortgage holders are the innocent victims of Labour’s reckless economic mismanagement, National’s Finance spokesperson Nicola Willis says.

“New data shows Labour’s cost of living crisis continues to take its toll with 423,000 New Zealanders now in debt arrears (up 7.8 per cent from a year ago) and 18,600 with late mortgage payments (up 28 per cent from a year ago).

“Labour’s legacy will be the mortgage misery they have caused tens of thousands of New Zealanders.

“In the past two years official interest rates have risen faster than at any other time in New Zealand’s history. Labour’s reckless government spending has poured fuel on the inflation fire, forcing the Reserve Bank to crank interest rates higher to try to control it.

“Whatever decision the Reserve Bank makes tomorrow, the threat of future interest rate hikes looms large.

“With many already expecting the Reserve Bank to hike further in November, Labour’s economic mismanagement is set to deliver Kiwis coal in their stockings for Christmas.

“Labour’s spraying of the government money-hose has left mortgage holders drowning:

  • The Official Cash Rate is at its highest level in nearly 15 years, now higher than Australia, the United Kingdom, Canada, and the EU.
  • The OCR has climbed to 5.5 per cent in less than two years – the fastest rate rise in New Zealand history.
  • The latest average special interest rate advertised by the banks on a two-year fixed mortgage on a residential property was 6.8 per cent. Two years ago, it was only 2.9 per cent.
  • This has led to fortnightly interest costs on a $500,000 mortgage going from $550 to $1,300 in that time. For many, that has pushed them over the edge and they are falling into arrears.

“While Labour spends the campaign trying to distract people with misinformation and negative attacks on National, we are focused on what Kiwis are really worried about.

“National has a plan to beat inflation and take pressure off interest rates. We would reduce costs on business, eliminate bottlenecks in the economy, restore the Reserve Bank’s focus on inflation, deliver tax relief, and restore fiscal discipline.”

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