RBNZ will activate debt-to-income tool

New Zealand central bank to bring in new macro-prudential tool in July

Reserve Bank of Australia
The Reserve Bank of New Zealand

The Reserve Bank of New Zealand (RBNZ) said today (May 28) that it will require banks to comply with new macro-prudential restrictions on mortgage lending.

The RBNZ is introducing debt-to-income (DTI) ratios for borrowers and easing loan-to-value (LTV) ratios on mortgages, aiming to reduce risks stemming from property lending.

The new restrictions, applying to banks’ new lending for residential properties in New Zealand, will take effect from July 1. Banks were previously given 12 months to

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