Reserve Bank to ease LVR restrictions!
With banks tightening credit growth and house price inflation easing, the RBNZ announced today that the LVR (loan to value ratio) restrictions were being eased.
That means banks’ allocation for owner-occupied lending, 20% can be for over 80% LVR rather than 15%.
For investors the maximum LVR is now 70% rather than 65%.
The change kicks in from 1 January 2019.