Australia and New Zealand flags are almost the same but both nations are asleep by not saving.

Government policy to remove all mortgages from all New Zealand operations.

How would this work.

Well a merry go around of land and improvement transactions that reduce the Quotable value of the properties.

Who would lose out.

The Australian banks

For example to pay 7% on a purchase over a term of 21 years the principle will double.

For example a property worth $200,000 at 7% interest over 21 years the person will pay $200,000 in interests and still have $200,000 to pay for a total of $400,000.

Who makes this extra $200,000. 

The Australian banks.

The New Zealand Governemnt wants to sell Kiwi Bank to ACC and the Super fund 

What this will do is give money to New Zealand post to keep its snail mail operation afloat.

New Zeland post has grown Kiwi Bank $18,000,000,000 ($18 billion) from its initial $400,000,000 outlay which if has paid back to the Governemnt and collects a dividend each year. New Zealand tax payers are in a win form Jim Anderson push to launch Kiwi Bank and Jim Buldger stewardship.

But the key to understanding the sale has a back bone of under using the Joyce's.

In other words New Zealand is a cash cow to big money over seas.

So getting back to my original premise. 

If 95% of banking from Australian Banks was to be deleveraged and kiwi banks 5% was permitted to take up farming banking and a push to mortgage free farming took place we would see the following.

1. Land prices would have to fall to 50% of current value.

Disaster you say. But mortgage free is our gaol. Goal. 

By having bank loans in all land in New Zealand we are paying 100% of the land value in interest to Australian banks.

So settle down before tossing hands in air at the idea of land prices falling and young people being able to purchase land to start a family.

2. Some farmers are freehold now and would be penilised for land prices falling. 

Why only when they sell the land. In the mean time they make money from production food off the land and that would not change.

3. Land would lump back into larger productive areas of land and reverse the trend of subdividing smaller lots.

In urban locations New Zealand would need to look at going up in the air with building development and not sprawling out into productive land areas with subdivides

4. The Australian banks would be paid off the principle owed and for a time the kiwi bank tax payer would carry the transfer of liability.

However we are looking to not charge the 100% of the land price in interest to banks.

New Zealand becoming a saver nation and not robbing the social safety net to play the pokie machines.