Regulatory Alerts2022-05-17
Reserve Bank of New Zealand LVR Consultation Submissions
The Reserve Bank of New Zealand received public submissions regarding the proposed reinstatement of Loan-to-Value Ratio restrictions to address housing market instability. Submitters largely supported the measure, arguing it is necessary to curb investor-driven price inflation and improve affordability for first-home buyers. Additional recommendations included implementing targeted LVRs, introducing loan-to-income ratios, and increasing deposits for investment properties to stabilize the financial system.
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