RBNZ to tighten housing loan limits in November
“House prices remained unsustainable” despite earlier action, New Zealand governor Bascand says
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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