RBNZ to re-impose loan-to-value limits from March 2021
Central bank records increase in mortgages granted to high-risk lenders
The Reserve Bank of New Zealand will re-impose loan-to-value ratios (LVRs) from March 2021, having previously relaxed the measure to help banks lend during the pandemic.
In its latest financial stability report, published today (November 25), the central bank said high-risk mortgage lending had increased recently alongside an “unexpected acceleration” in housing market activity.
“Some banks had eased maximum LVRs to property investors from 70% to 80%, and lending at these high LVRs increased
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