RBNZ details eased LVR restrictions
Feedback was sought from registered banks in late April on the implementation of the proposal. Following a review of the feedback received, the decision has been made to proceed with easing the restrictions.
“In making this decision it is important to reiterate our assessment that the risks to financial stability posed by high-LVR lending have reduced to a level where we believe the current restrictions may be unnecessarily reducing efficiency,” deputy governor Christian Hawkesby said.
Restrictions on high-LVR residential mortgage lending set a ‘speed limit’ on how much new low-deposit lending banks can do.
From 1 June 2023 LVR restrictions will be eased, from:
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