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.
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.