New Zealand central bank lowers loan-to-value ratios

housing8

The Reserve Bank of New Zealand will ease loan-to-value ratio (LVR) restrictions on housing loans at the beginning of 2019, saying risks in the sector had fallen.

“Both mortgage credit growth and house price inflation have eased to more sustainable rates, reducing the riskiness of banks’ new housing lending,” governor Adrian Orr said today (November 28).

From January 2019, up to 20% of new mortgage loans to owner occupiers can have deposits of less than 20%, compared with the previous limit of

To continue reading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: