RBNZ proposes removing mortgage lending curbs as covid-19 bites

Tue, 21 Apr 2020

The Reserve Bank of New Zealand is proposing to remove loan-to-valuation restrictions on mortgage lending as covid-19 wreaks havoc on the economy.“This move will help banks to keep lending to support customers, including with mortgage deferral,” the central bank said.The LVRs, which went through several adjustments, were first introduced in October 2013 to curb an overheated housing market.There are currently two loan-to-value restrictions in place: banks can only lend 20 percent of their residential mortgage book to owner-occupiers...

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