Finance

RBNZ to clobber first-home buyers with new LVR restrictions

Jenny Ruth
Tue, 21 Sep 2021

RBNZ to clobber first-home buyers with new LVR restrictions
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...

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