Reserve Bank consulting on LVR rules for loans to Auckland residential property investors

Release date
03 June 2015

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

+64 4 471 3698 or +64 27 337 1102

Angus.barclay@rbnz.govt.nz