9 Feb 2021

Reserve Bank reimposing LVR restrictions

From Midday Report, 12:15 pm on 9 February 2021

The Reserve Bank is tightening lending to house buyers.

The Reserve Bank of New Zealand

The Reserve Bank of New Zealand Photo: RNZ / Alexander Robertson

This morning the Bank confirmed it will reimpose loan to value ratios from next month at 20 percent for owner-occupiers and 30 percent for property investors.

The limit for investors will rise to 40 percent from May.

And the government is also signalling that it plans to stem demand and boost supply.

Emma Hatton spoke to CoreLogic senior property economist, Kelvin Davidson.