From the FXWW Chatroom: Under the proposed new restrictions:
No more than 5 percent of bank lending to residential property investors across New Zealand would be permitted with an LVR of greater than 60 percent (i.e. a deposit of less than 40 percent).
No more than 10 percent of lending to owner-occupiers across New Zealand would be permitted with an LVR of greater than 80 percent (i.e. a deposit of less than 20 percent).
Loans that are exempt from the existing LVR restrictions, including loans to construct new dwellings, would continue to be exempt.
These proposed new restrictions would take effect on 1 September 2016 and simplify the LVR policy by removing the current distinction between lending in Auckland and the rest of the country.
View further market information in the FXWW Chatroom with a free trial.