Regulatory Alerts2022-05-17
LVR New Construction Exemption Q and As
The Reserve Bank of New Zealand issued this guidance to clarify two categories of construction lending exempt from Loan-to-Value Ratio restrictions: new dwelling construction and remediation of existing properties. These exemptions support housing supply and value restoration while requiring banks to maintain prudent internal lending criteria and report related data. The rules apply equally to first-home buyers and investors, with the new dwelling exemption effective since October 2013 and the remediation exemption since November 2015.
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