Regulatory Alerts2022-02-27
Framework for Restrictions on High-LVR Residential Mortgage Lending
The Reserve Bank of New Zealand issued this framework to impose quantitative restrictions on the share of high loan-to-valuation ratio residential mortgage lending by registered banks to maintain financial stability. The policy applies to all New Zealand registered banks, utilizing standard conditions of registration that limit high-LVR loans over rolling three or six-month periods based on lending volume. The document defines qualifying lending amounts, establishes anti-avoidance measures to prevent circumvention, and outlines specific exemptions and measurement guidelines for compliance.
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