Subscribe today - find out more
Why you should consider BusinessDesk
Finance

RBNZ to clobber first-home buyers with new LVR restrictions

Jenny Ruth
Tue, 21 Sep 2021

High LVR lending to first-home buyers increased sharply after restrictions were removed last year. (Image: Deposit Photos)
Jenny Ruth
Tue, 21 Sep 2021
The tighter loan-to-valuation ratio restrictions the Reserve Bank of New Zealand (RBNZ) is proposing will clobber first-home buyers most, at odds with finance minister Grant Robertson's oft-stated desire to encourage more first-home buyers into homeownership.The RBNZ plans to reduce the amount of high loan-to-valuation ratio (LVR) lending each bank can do to no more than 10% of new lending from Oct 1, halving the current restriction of 20% of new lending.Consultation on the proposal closed last Friday.RBNZ's own data, table C31, shows t...

Use the information you’ve already given Google to create your subscription.

Not convinced yet?

Subscribe to our Daily News Update free newsletter.

Sport
Why US private equity still sees a silver lining in the All Blacks
Trevor McKewen | Sat, 16 Oct 2021

 Silver Lake has been battered from pillar to post in the great Kiwi rugby debate. So, why is it not giving up?

On the Money
On the Money: John Key, car boss's big bonus, Chris Meehan, and more
Rebecca Stevenson | Sat, 16 Oct 2021

OTM this week: who is the go-to lawyer for high net worth New Zealanders, can this listed company boss rev up his firm, which tech exec is living la vida normal, and more.

Opinion
Has Rob Everett thrown a hospital pass?
Brian Gaynor | Sat, 16 Oct 2021

Samantha Barrass, Rob Everett’s successor at the FMA, may have a baptism of fire.

Sponsored
Let's not lose sight of the wood for the trees

As much generation will need to be built in the next 14 years as has been built in the last 40+ years for Aotearoa to meet its commitment of achieving net zero emissions by 2050.

Sponsored
Getting the health and safety of remote workers right

With many staff working alone or in isolated situations, workplace health and safety is an operational priority. Here is how your business can protect remote workers.