RBNZ proposes changes to mortgage regulations for banks

Central bank plans to bring in debt-to-income requirements to reduce financial stability risks

Auckland, New Zealand
Auckland, New Zealand

The Reserve Bank of New Zealand (RBNZ) launched a consultation today (January 23) on a plan to change its mortgage lending rules for banks.

The central bank is seeking feedback on a plan to bring in debt-to-income ratios for borrowers and to ease loan-to-value (LTV) ratios on mortgages. It said the aim was to reduce risks stemming from residential property lending.

Under the plans, banks would not be allowed to issue more than 20% of their residential lending to owner-occupiers seeking debt worth

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