A spike in mortgage checks for under-28 years olds shows first home buyers are rushing to beat the October 1 clampdown on low deposit bank lending, according to a credit agency.
Veda managing director John Roberts said inquiries for mortgages by young people increased by 51.25 per cent last month compared to August last year, hitting the highest level in seven years.
"We have never seen an increase in applications like this - the data is compelling evidence that first home buyers are trying to buy before the Reserve Bank restrictions effectively limit the number who can buy with a 10 per cent deposit or less."
"With limited supply that means prices for first homes could well increase."
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Roberts said Veda had also seen a 23.5 per cent increase in inquiries for credit checks around personal loans which could indicate people looking for ways to get around the new restrictions.
"It is well known that house buyers who don't have a large enough deposit to get a mortgage from a mainstream bank will borrow the deposit from a second tier lender - like a finance company.
"It's early days but indications are the Reserve Bank's high loan-to-value ratios may have limited impact on Auckland's housing bubble."