Home loan restrictions are biting, Reserve Bank says

Wed, 27 Nov 2013

By Tina Morrison Nov 28 (BusinessDesk) – Banks reduced the number of high debt mortgages they signed up in October, the first month of new Reserve Bank of New Zealand lending restrictions. High loan-to-value ratio mortgage lending fell to 11.7 percent of total new mortgage lending in October, from 25.5 percent in September and around 30 percent earlier in the year, the Reserve Bank said, citing a new monthly survey which tracks the figures. Under new rules introduced Oct. 1, banks must reduce lending at LVRs above 80 percent to no more than...

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