BRIEF-Reserve Bank Of New Zealand Launches Consultation On DTI And LVR Settings

Reserve Bank of New Zealand : * CONSULTATION ON DTI AND LVR SETTINGS

* LAUNCHED CONSULTATION ON ACTIVATING DEBT TO INCOME RESTRICTIONS AND LOOSENING LOAN TO VALUE RATIOS FOR RESIDENTIAL LENDING * CONSULTATION WILL CLOSE ON 12 MARCH 2024

* PROPOSE TO INITIALLY SETTING DTI POLICY TO ALLOW BANKS TO LEND 20% OF RESIDENTIAL LOANS TO OWNER-OCCUPIERS WITH DTI GREATER THAN 6 * PROPOSING EASING THE LVR SETTINGS AT THE SAME TIME AS ACTIVATING DTIS

* PROPOSE INITIALLY SETTING THE DTI POLICY TO ALLOW BANKS TO LEND 20% OF RESIDENTIAL LOANS TO INVESTORS WITH DTI GREATER THAN 7 * PROPOSE EASING LVRS TO ALLOW 20% OF OWNER-OCCUPIER LENDING TO BORROWERS WITH LVR GREATER THAN 80%

* PROPOSE EASING LVRS TO ALLOW 5% OF INVESTOR LENDING TO BORROWERS WITH AN LVR GREATER THAN 70% * EXPECT TO COMMUNICATE DECISIONS IN THE MIDDLE OF THIS YEAR Further company coverage: