Debt to income restrictions will be here by July, Reserve Bank says

RBNZ deputy governor Christian Hawkesby says debt-to-income and loan-to-value ratio restrictions complement each another. (Image: NZME)

Staff reporters

Tue, 28 May 2024

The Reserve Bank of New Zealand will implement restrictions by the middle of this year, which will likely limit home loan lending during boom times. From July 1, the Reserve Bank will put in place new debt-to-income ratio (DTI) restrictions to limit the volume of high debt-to-income lending banks can extend.But the central bank will also ease loan-to-value ratio restrictions (LVRs), allowing banks to lend out more low-deposit loans. The restrictions will apply to new lending on residential properties in New Zealand for both owner-occu...

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