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RBNZ consulting on proposed changes to LVR loans

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Contributor:
Fuseworks Media
Fuseworks Media

The Reserve Bank has published a consultation paper about proposed changes to the rules that banks must follow for high-LVR mortgage loans.

The proposals were announced in the Reserve Bank’s Financial Stability Report released on 13 May 2015. They would mean investors in Auckland property would generally need a 30 percent deposit if they’re borrowing for a property, while home buyers outside Auckland would see increased availability of high-LVR mortgages.

The consultation will run until 13 July. The Reserve Bank expects to publish a summary of submissions and final policy position in August, with revised rules taking effect from 1 October.

More information:

Consultation Paper: http://reservebank.govt.nz/financial_stability/macro-prudential_policy/Consultation-Paper-investor-housing.pdf (PDF 1.37MB)

BS19 Framework for Restrictions on High-LVR Residential Mortgage Lending: http://www.rbnz.govt.nz/financial_stability/macro-prudential_policy/BS19-Framework-for-LVR-restrictions.pdf (PDF 221KB)

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