Regulatory Alerts2022-05-17
Definition of owner-occupied residential property
The Banking Supervision Handbook provides a definition of owner-occupied residential property to classify mortgage loans and determine investment property status under the Capital Adequacy Framework. This classification is critical for applying restrictions on high Loan-to-Value Ratio residential mortgage lending in Auckland. The document illustrates qualifying scenarios, including principal residences, secondary homes, and properties held by trusts or companies for beneficial owners.
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