Auckland housing market.

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)

BS19 Framework for Restrictions on High-LVR Residential Mortgage Lending (PDF 221KB)

Selwyn Manning, BCS (Hons.) MCS (Hons.) is an investigative political journalist with 23 years media experience. He specializes in reportage and analysis of socioeconomics, politics, foreign affairs, and security/intelligence issues. Selwyn has extensive experience as a commentator and has provided live political analysis to a wide range of television and radio organizations broadcasting in New Zealand, Australia and globally including the BBC (Five Live, London) and BBC (World Service). He is currently a correspondent to Australia's FiveAA radio, and is a regular live-on-air panelist on Radio New Zealand's The Panel with broadcaster Jim Mora.