Current LVRs aren't working sufficiently: RBNZ

RBNZ deputy governor Geoff Bascand is worried about negative equity. (Image: Deposit Photos)

Tue, 03 Aug 2021

The Reserve Bank said its loan-to-valuation ratio restrictions (LVRs) imposed to date haven't reduced risky lending enough, so it plans to tighten them further."We are focused on ensuring borrowers are resilient to a range of future economic and financial conditions," said deputy governor and head of financial stability Geoff Bascand in a statement.The RBNZ is particularly concerned about those who have borrowed in the last 12 months at high LVRs and high debt-to-income ratios (DTIs), Bascand said."If house prices were to fal...

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