Regulatory Alerts2022-05-17
Response to submissions on adjustments to restrictions on high-LVR Residential Mortgage Lending
The Reserve Bank of New Zealand issued this document to finalize adjustments to its macroprudential policy on high-Loan-to-Value Ratio (LVR) residential mortgage lending following industry consultation. The Bank raised the initial speed limit for Auckland investor lending above 70% LVR from 2% to 5% and delayed the implementation date to 1 November 2015 to allow banks adequate system build time. Additionally, the Reserve Bank decided to classify mixed-collateral customers under the most restrictive category to simplify compliance and introduced a new exemption for property remediation work.
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