RBNZ to ease LVR restrictions in 2018

The Reserve Bank is undertaking a modest easing of the LVR restrictions.

RBNZ ease LVR restrictions
  • 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.

LJ Hooker NZ

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