Jul
06

RBNZ May Extend Property Investor Lending Limits Beyond Auckland

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New Zealand’s central bank may broaden lending limits on property investors as Auckland’s housing boom spreads to other parts of the country, Deputy Governor Grant Spencer said.

Existing rules, which require property investors in Auckland to have at least a 30 percent deposit, could be applied nationwide by the end of the year, Spencer said in notes for a speech in Wellington Thursday. The RBNZ introduced the so-called loan-to-value-ratio on all home lending in 2013 and tightened the restrictions for Auckland investors last year.

“Given the growing housing market pressures across the country one approach would be to adopt a single national LVR limit for investors,” Spencer said. “Given that the banks have much of the relevant systems work in place, we expect that such a measure could potentially be introduced by the end of the year.”…

RBNZ May Extend Property Investor Lending Limits Beyond Auckland

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