Regulatory Alerts2022-05-17
Reserve Bank of New Zealand Consultation Paper on Adjustments to High-LVR Lending Restrictions
The Reserve Bank of New Zealand proposes tightening nationwide loan-to-value ratio restrictions to mitigate financial stability risks from elevated house prices and household debt. The consultation outlines specific limits capping investor lending at 5 percent above 60 percent LVR and owner-occupier lending at 10 percent above 80 percent LVR. These changes replace the previous Auckland-specific rules with a uniform national framework to reduce the likelihood of a severe housing market correction.
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