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MNI BRIEF: RBNZ Tightens LVRs To Cool Property Market

MNI (Sydney)
SYDNEY (MNI)

The Reserve Bank of New Zealand said on Thursday it will move to dampen the country's booming property market by proceeding with its plan to tighten Loan-to-Value Ratio (LVR) restrictions on lending to owner-occupiers.

The restrictions will limit the amount of lending banks can do above an LVR of 80% to 10% of all new loans to owner occupiers, down from 20% currently.

The RBNZ has proposed to introduce the new measured from Oct. 1, but they will now be introduced from Nov. 1 due to disruptions caused by the imposition of new lockdowns to curb the spread of Covid-19. The next monetary policy review is in October.

MNI Sydney Bureau | +61-405-322-399 | lachlan.colquhoun.ext@marketnews.com
MNI Sydney Bureau | +61-405-322-399 | lachlan.colquhoun.ext@marketnews.com

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