RBNZ tweaks LVR rules following consultation

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Reserve Bank of New Zealand announces tighter lending restrictions

New rules tightening loan-to-value (LVR) restrictions for investors nationwide were revealed by the Reserve Bank of New Zealand (RBNZ) today (September 5) following a consultation with banks.

Effective from October 1, a 5% "speed limit" for lending to investors with LVRs greater than 60% will be introduced. Owner-occupiers will be subject to a 10% speed limit for LVRs above 80%.

The speed limit specifies the proportion of a bank's loan book that can be devoted to higher-risk borrowers.

The new

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