Reserve Bank of New Zealand

  • Proposing to ease LVR restrictions with effect from 1 June 2023
  • Assessed that risks to financial stability from high LVR lending have reduced to a level where current restrictions may be unnecessarily reducing efficiency

  • Proposing to ease LVR restrictions from 5% limit for loans with LVR above 60% for investors, to 5% limit for loans with LVR above 65% for investors

At the margin an easing of policy

The Reserve Bank of New Zealand monetary policy

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LVR stands for Loan-to-Value Ratio. It is a ratio that measures the amount of a loan in relation to the value of the asset that is being used as collateral to secure the loan.