New Zealand central bank lowers loan-to-value ratios
RBNZ governor says housing risks are falling, but says banks may need higher capital ratios
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
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