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. Plus, find out how our Wellington Property managers can help you. We manage property in the Wellington and Hutt Valley regions. Feel confident your property and tenants are looked after by our professional Property managers with our property management services .

Discover how our Care & Return System will benefit you. Receive a no-obligation, free rental appraisal today for your Wellington investment property!

Call Jordan Atkinson - 027 297 0873

Quinovic Kent Terrace Wellington

Call Allan Hartley - 027 522 9084

Quinovic Johnsonville

Call Helen Vance - 027 487 8103

Quinovic Hutt Valley & Wellington

Get the latest news for landlords

Get a Free Rental Appraisal

Call Allan Hartley Today

Quinovic Johnsonville & Northern Suburbs

027 522 9084 or email me

Call Jordan Atkinson Today

Quinovic Kent Terrace Wellington

027 297 0873 or email me

Follow us: 

Facebook
Linkedin

Newsletter

Receive latest investor news straight to your inbox. Sign Up

Call Helen Vance Today

Quinovic Lower & Upper Hutt

027 487 8103 or email me

© Quinovic Kent Terrace, Johnsonville and Hutt Valley Wellington Property Management 1988-2020. Privacy Policy