The RBNZ notes that it "has today decided to...>

RBNZ: The RBNZ notes that it "has today decided to remove mortgage loan-to-value

ratio (LVR) restrictions for 12 months. The decision was made to ensure LVR

restrictions didn't have an undue impact on borrowers or lenders as part of the

mortgage deferral scheme implemented in response to the COVID-19 pandemic. The

Reserve Bank's decision was made in line with its financial stability mandate.

The Bank reached its conclusion after reviewing a Regulatory Impact Assessment

and robust feedback received from submitters over the consultation period,

Deputy Governor and General Manager of Financial Stability Geoff Bascand says.

"The Reserve Bank received more than 70 submissions from members of the public

and industry, expressing a wide range of views. The Reserve Bank also directly

approached a number of NGOs - including Maori and Pasifika groups to make them

aware of the proposed changes, and to provide them a chance to provide feedback

on the proposals..."Views on the proposals were mixed, reflecting both the costs

and benefits of borrowing restrictions."