RBNZ exempts construction lending from LVR restrictions after lobbying from builders, banks

Mon, 09 Dec 2013

Dec. 10 (BusinessDesk) – The Reserve Bank has exempted loans for new home building from its restrictions on low-equity mortgages, saying such lending finances a greater share of construction activity than it had initially thought. The exemption will apply as from Oct. 1, when the LVR restrictions were first introduced. The policy had created some tension with a government eager to kick-start residential construction in Auckland by creating a fast-track approval process and special housing zones. “In response to feedback from banks and the bu...

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