MIL OSI – Reserve Bank consulting on LVR rules for loans to Auckland residential property investors
The Reserve Bank has published a consultation paper (PDF 1.37MB) about proposed changes to the rules that banks must follow for high-LVR mortgage loans.
The proposals were announced in the Reserve Bank’s Financial Stability Report released on 13 May 2015. They would mean investors in Auckland property would generally need a 30 percent deposit if they’re borrowing for a property, while home buyers outside Auckland would see increased availability of high-LVR mortgages.
The consultation will run until 13 July. The Reserve Bank expects to publish a summary of submissions and final policy position in August, with revised rules taking effect from 1 October.Consultation Paper (PDF 1.37MB)