Tough servicing tests continue to hinder the home loan market, leaving borrowers unable to tap into attractive headline interest rates.

The New Zealand property market has emerged strongly out of lockdown, according to mortgage advisers, who say they are busy as ever this winter.

Banks have stopped taking on new borrowers above 80% LVR, despite the end of loan-to-value ratio restrictions last month.

Banks have stopped taking on new borrowers above 80% LVR, despite the end of loan-to-value ratio restrictions last month.

Mortgage lending fell to its lowest level on record last month as the property market ground to a halt during the Covid-19 lockdown.

Economists say that the Reserve Bank has left the door open to lower or even negative rates, as it kept the official cash rate on hold in its Monetary Policy Statement (MPS) today.

Major lenders have launched mortgage holidays for borrowers affected by the Covid-19 outbreak, using online application forms to process customer requests.

An official cash rate cut looks increasing likely amid the Covid-19 outbreak, but economists doubt mortgage rates will drop much further than current levels.

Heartland has expanded its reverse mortgage business and will now lend against investment properties and second homes, as the product becomes more popular in New Zealand.

LVR restrictions on mortgage lending could be a "permanent setting", according to Reserve Bank deputy governor Geoff Bascand.

The latest Reserve Bank figures show investors borrowed just $886 million in February, down on the same month in 2017 and 2018, as first home buyers narrow the gap.

January mortgage lending data from the Reserve Bank reveals first home buyers continue to grow their market share, closing the gap on property investors.

The Reserve Bank has today loosened the LVR restrictions for both investors and owners-occupiers, with changes coming into effect in January. 

Economists believe the Reserve Bank has adopted a slightly more hawkish stance on the OCR, but say the unchanged forecast suggests a continued low interest rate environment.

Mortgage lending to property investors fell to $1.01 billion last month amid ongoing tightening on interest-only credit, the latest Reserve Bank data shows.

ASB has hired Roderick Carr, the former chairman and acting governor of the Reserve Bank of New Zealand, to its board of directors.