RBNZ restricts low-deposit mortgage lending

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The Reserve Bank of New Zealand (RBNZ) will impose restrictions on the amount of low-deposit mortgages banks can issue as of October 1, as it looks to clamp down on the country's over-valued housing market.

Under the new rules – one of the RBNZ's four macro-prudential tools – banks will only be permitted to commit 10% of their new lending to mortgages worth more than 80% of the property's value.

The RBNZ governor, Graeme Wheeler, said the rule was "designed to help slow the rate of housing-relat

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