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Reinstating loan-to-value ratio restrictions

In December 2020 we consulted on a proposal to reinstate loan-to-value (LVR) ratio restrictions at the same level as before the onset of COVID-19. The consultation closed on 22 January 2021.

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In December 2020 we ran a public consultation on a proposal to reinstate loan-to-value ratio (LVR) restrictions at the same level as before the onset of COVID-19. The consultation closed on 22 January 2021.

Consultation paper: Reinstating loan-to-value ratio restrictions

PDF | 2MB

Regulatory impact assessment: Reinstating loan-to-value ratio restrictions

PDF | 1MB

LVR Consultation summary of submissions

PDF | 628KB

LVR Consultation full submissions (redacted)

PDF | 3MB

About LVR

LVR is a measure of how much a bank lends against mortgaged property, compared to the value of that property.

Temporary limits on high-LVR residential mortgage lending have been in place since October 2013. We have revised the restrictions over time and removed them in response to the economic impact of the COVID-19 pandemic.

LVR lending restrictions differ depending on whether a loan is secured by residential investment property or owner-occupied residential property.

The previous limits that applied to bank lending to investors and owner-occupiers are available on our loan-to-valuation ratio restriction page.

Loan-to-valuation ratio restrictions