Reserve Bank gives banks a year to get ready for debt-to-income restrictions

The Reserve Bank's Kate Le Quesne said DTIs could reduce the risk of a housing-related crisis. (Image: RBNZ)

Mon, 03 Apr 2023

The Reserve Bank is telling banks to ready their systems and processes within 12 months so they can comply with the possible future use of debt-to-income restrictions (DTIs) on bank mortgage lending.The central bank announced in April last year that it was adding DTIs to its macro-prudential toolkit and began consulting on what the framework should look like.“DTI restrictions on residential mortgage lending, when implemented, set limits on the amount of debt borrowers can take on relative to their income,” said Kate Le Quesne, the R...

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