Regulatory Alerts2024-05-05
Reserve Bank of New Zealand Debt-to-Income New Commitments Survey Procedures and Definitions
The Reserve Bank of New Zealand issues these procedures and definitions to standardize the reporting of new residential mortgage commitments for monitoring financial system risk. The document mandates that registered banks report the number and value of new loans by borrower type, region, and debt-to-income ratios using specific calculation methodologies for income and debt. It establishes precise criteria for classifying borrowers as first home buyers, owner occupiers, or investors, and details how to handle unknown ratios and complex borrowing parties.
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