RBNZ to tighten housing loan limits in November

New Zealand property

The Reserve Bank of New Zealand will introduce tougher measures to control mortgage lending from November 1.

In a statement on September 23, deputy governor Geoff Bascand said the RBNZ would be implementing tighter loan-to-value ratios on lending to owner-occupied housing. The RBNZ refers to the limits as LVRs, unlike many peers, which call them LTVs.

The existing rules limit banks’ lending at LVRs higher than 80% to no more than 20% of new loans. The central bank’s new rules cut the limit to

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