Great news for property buyers – the Reserve Bank is proposing the removal of mortgage loan-to-value ratio (LVR) restrictions in line with the Bank’s financial stability mandate.
A member of our team, Chris Simpson rounded up this exciting update in a recent LinkedIn post:
“The monetary policy in NZ really is kicking in! The Reserve Bank is proposing the removal of mortgage loan-to-value ratio (LVR) restrictions. The proposal is in response to the economic downturn caused by the COVID-19 pandemic. The LVR requirements are one of the macro-prudential tools that the Reserve Bank has available to respond to cyclical pressures. “LVRs were introduced as a macro-prudential financial stability tool in October 2013 and have been adjusted over time. This move will help banks to keep lending to support customers, including with mortgage deferrals. And on May 14th we will have a budget from the NZ Government that is going to implement fiscal policy, ensuring New Zealand is going to be OK.”
Read the full update from the Reserve Bank here.
