- 19 December, 2017
- PROPERTY MANAGEMENT, RESIDENTIAL
- RBNZ, LVR, Loan to Value Ratio
From 1 January 2018, the LVR restrictions will require that:
- No more than 15% (currently 10%) of each bank’s new mortgage lending to owner occupiers can be at LVRs of more than 80%.
- No more than 5% of each bank’s new mortgage lending to residential property investors can be at LVRs of more than 65% (currently 60%).
The Bank will monitor the impact of these changes and will only make further LVR adjustments if financial stability risks remain contained.
A cautious approach will reduce the risk of resurgence in the housing market or deterioration in lending standards.