Regulatory Alerts2022-05-17
Framework for Restrictions on High-LVR Residential Mortgage Lending
The Reserve Bank of New Zealand issues 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 establishes standard conditions of registration that limit high-LVR lending across specified categories and measurement periods, while explicitly prohibiting banks from entering into arrangements designed to circumvent these limits. It further defines the scope of qualifying mortgage lending, outlines anti-avoidance measures, and details the regulatory reporting and disclosure requirements for all New Zealand registered banks.
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