The Reserve Bank has published a consultation paper (PDF 1.37MB, amended 4 June) about proposed changes to the rules that banks must follow for high-LVR mortgage loans.
The proposals were announced in the Reserve Bank's Financial Stability Report released on 13 May 2015. They would mean investors in Auckland property would generally need a 30 percent deposit if they're borrowing for a property, while home buyers outside Auckland would see increased availability of high-LVR mortgages.
The consultation will run until 13 July. The Reserve Bank expects to publish a summary of submissions and final policy position in August, with revised rules taking effect from 1 October.
More information:
Consultation Paper (PDF 1.37MB) (amended 4 June)
BS19 Framework for Restrictions on High-LVR Residential Mortgage Lending (PDF 221KB)
Media contact:
Angus Barclay, External Communications Advisor