tmmonline.nz  |   landlords.co.nz        About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds

NZ's Financial Adviser News Centre

GR Logo
Last Article Uploaded: Tuesday, November 24th, 3:33PM

Mortgages

rss
Latest Headlines

LVR limits could return: RBNZ

Reserve Bank governor Adrian Orr is monitoring the buoyant housing market and may reimpose LVR restrictions.

Wednesday, October 21st 2020, 12:15PM 1 Comment

At the INFINZ conference, Orr said the central bank was "looking at" the market, ready to act if necessary if the housing market becomes overheated. 

The Reserve Bank scrapped LVR ratios in May for one year, but could change reintroduce the rules if the market gets out of control.

It comes as investor and first home buyer lending at high LVR rose significantly in recent months. 

Investors have enjoyed an increase in home loans above 70% LVR.

According to the Reserve Bank, high LVR new mortgage commitments to investors saw an increase of 10.3% in August.

Newsroom reports the RBNZ governor said he would act if the bank sees house prices being driven higher by very high leverage loans and by investors rather than households.

The RBNZ first introduced LVR restrictions in October 2013 to cool the housing market.

Orr said the housing market risks reverting back to higher rates of LVR lending.

The bank has tools “and we would be prepared to use those tools,” he said.

Tags: LVR Reserve Bank

« 2.25% one year rate from the Co-opHigh LVR investor lending up 134% »

Special Offers

Comments from our readers

On 21 October 2020 at 8:15 pm Amused said:
At the INFINZ conference, Orr said the central bank was "looking at" the market, ready to act if necessary if the housing market becomes overheated.

Newsflash Governor Orr. The housing market is already overheated and this is thanks in part to your decision in April to remove the LVR restrictions for investors. This decision has since seen most lenders relaxing their deposit requirements for property investors. Now we have ASB stating today a 134% increase in high LVR lending (above 70%) in the three months to August, compared with the same period last year. Owner-occupiers meanwhile are getting squeezed out of properties that should be going into their hands. It's like watching a train wreck happening in slow motion.

At this point I think a class of year 13 economics students at Wellington College could probably do a better job than the so called experts currently employed up at 2 The Terrace, Wellington. The certainly couldn't do any worse!

Sign In to add your comment

 

print

Printable version  

print

Email to a friend
News Bites
Latest Comments
Subscribe Now

Mortgage Rates Newsletter

Daily Weekly

Previous News

MORE NEWS»

Most Commented On
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AIA 4.55 2.55 2.69 2.79
ANZ 4.44 3.09 3.25 3.39
ANZ Special - 2.49 2.69 2.79
ASB Bank 4.45 2.49 2.59 2.65
Bluestone 3.49 3.49 3.49 3.49
BNZ - Classic - 2.49 2.69 2.79
BNZ - Mortgage One 5.15 - - -
BNZ - Rapid Repay 4.60 - - -
BNZ - Std, FlyBuys 4.55 3.09 3.29 3.39
BNZ - TotalMoney 4.55 - - -
CFML Loans 4.95 - - -
Lender Flt 1yr 2yr 3yr
China Construction Bank 4.49 4.70 4.80 4.95
China Construction Bank Special - 2.65 2.65 2.80
Credit Union Auckland 5.45 - - -
Credit Union Baywide 5.65 3.95 3.85 -
Credit Union South 5.65 3.95 3.85 -
First Credit Union Special 5.85 2.95 3.45 -
Heartland 3.95 2.89 2.97 3.39
Heartland Bank - Online 2.50 1.99 2.35 2.45
Heretaunga Building Society 4.99 3.50 3.40 -
HSBC Premier 4.49 2.25 2.35 2.65
HSBC Premier LVR > 80% - - - -
Lender Flt 1yr 2yr 3yr
HSBC Special - - - -
ICBC 3.69 2.45 ▼2.45 ▼2.65
Kainga Ora 4.43 2.93 3.07 3.24
Kainga Ora - First Home Buyer Special - 2.25 - -
Kiwibank 3.40 3.30 3.50 3.50
Kiwibank - Offset 3.40 - - -
Kiwibank Special 3.40 2.55 2.65 2.65
Liberty 5.69 - - -
Nelson Building Society 4.95 3.45 3.49 -
Pepper Essential 4.79 - - -
Resimac 3.39 3.35 2.99 3.35
Lender Flt 1yr 2yr 3yr
SBS Bank 4.54 2.99 3.15 3.25
SBS Bank Special - 2.49 2.65 2.75
The Co-operative Bank - First Home Special - - - -
The Co-operative Bank - Owner Occ 4.40 2.49 2.69 2.79
The Co-operative Bank - Standard 4.40 2.99 3.19 3.29
TSB Bank 5.34 3.29 3.29 3.59
TSB Special 4.54 2.49 2.49 2.79
Wairarapa Building Society 4.99 3.55 3.49 -
Westpac 4.59 3.09 3.29 3.39
Westpac - Offset 4.59 - - -
Westpac Special - 2.49 2.69 2.79
Median 4.55 2.94 3.07 2.80

Last updated: 23 November 2020 12:23pm

About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox
 
Site by Web Developer and eyelovedesign.com