OECD lends support to DTIs

The Reserve Bank (RBNZ) has been told implementing Debt Servicing Restrictions (DSRs) on borrowing would be a good thing.

The best known DSR is a Debt to Income (DTI) ratio, which explicitly links borrowing capacity to a person's earnings.

Adoption of DTIs could put a further restraint on brokers trying to arrange a mortgage for their clients.

A nod of approval for mechanisms like DTIs has come in the latest report on New Zealand from the OECD.