Reserve Bank Proposes Removal of LVR Restrictions

In response to the economic downturn caused by Covid-19, the Reserve Bank is proposing the removal of mortgage loan-to-value (LVR) ratio restrictions for 12 months, after which the changes will then be reviewed.



The motivation is to help banks to keep lending to support customers, including helping current borrowers who are requesting mortgage holidays.


As Deputy Governor and General Manager of Financial Stability Geoff Bascand says “LVRs were introduced as a macro-prudential financial stability tool in October 2013 and have been adjusted over time. Adjusting the use and calibration of macro-prudential tools in response to economic conditions is how they are intended to be used". If put into effect, the change will be made by installing a change in bank Conditions of Registration.


The Reserve Bank will monitor lending activity and feedback from retail banks over the next 12 months as the effects of the pandemic become more apparent.


Currently the Reserve Bank is in the consulting stage for seven days and expect to make a decision promptly after that. Public consultation is open during this period. If you want to give feedback on the proposal you can email rbnz-info@rbnz.govt.nz


Feel free to get in touch to chat more about the market and upcoming legislation changes. If you're considering Property Management get in touch with us today. Locally owned and managed, we offer residential property management services across the entire Wellington & Hutt Valley region.


We take care of investments, offering peace of mind and a personal service to investors and tenants alike. Our solutions are backed by industry-leading technology and proven systems that promote both excellent property care and strong investment returns. Taking on all aspects of the landlord’s role, we guide our clients with professional, tailored advice using our extensive experience and insight in the rental market that can only be built over time.


If you would like to chat about the possibility of working together, or to receive a no-obligation, FREE Rental Appraisal get in touch with our team today.

Quinovic Johnsonville | Wellington

Call Jordan Atkinson - 027 297 0873


Quinovic Hutt Valley | Wellington

Call Helen Vance - 027 487 8103

Quinovic Kent Terrace | Wellington

Call Jordan Atkinson - 027 297 0873



Quinovic Wellington Property Managers

Get the latest news for landlords

Thanks for subscribing!

Get a Free Rental Appraisal

Free and no-obligation! Receive a detailed report on the earning potential of your investment property.

Thanks! We'll be in touch soon.

Thanks for subscribing