Reserve Bank looks to ease mortgage lending curbs

Reserve Bank looks to ease mortgage lending curbs
Current LVR settings were put in place November 2021. (Image: Getty)
Rebecca Howard
The Reserve Bank of New Zealand is proposing to ease mortgage loan-to-value ratio (LVR) restrictions from June 1 as they may now be counter-productive.LVR restrictions promote financial stability by limiting high-risk mortgage lending.“Our assessment is that the risks to financial stability posed by high-LVR lending have reduced to a level where the current restrictions may be unnecessarily reducing efficiency,” said the Reserve Bank of NZ (RBNZ) deputy governor Christian Hawkesby.They may be “impeding the provision of credit...

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