Reserve Bank gives more details on DTIs

It says it will be consulting with lending institutions, such as banks, on this matter towards the end of this month.

The Reserve Bank has been considering DTIs since the middle of the year, and reached agreement with the Minister of Finance in July. 

This involved a broad category of policy tools, Debt Serviceability Restrictions (DSRs), of which DTIs are the most prominent component. 

In its latest Financial Stability Report, issued this morning, the RBNZ said DSRs were the most effective additional tool after Loan to Value (LVR) tools which are aready in use and are in fact being tightened up further.