PHOTO: STUFF – The Reserve Bank says risks to New Zealand’s financial system have eased over the past six months.
The Reserve Bank says risks to New Zealand’s financial system have eased over the past six months and it will move to ease loan-to-value restrictions.
From January 1, up to 20 per cent of new loans will be allowed to be to owner-occupier borrowers with equity of less than 20 per cent.
At present, only 15 per cent of new lending can be to this group.
Up to 5 per cent of new lending will be allowed to be to investors with deposits of less than 30 per cent. At present the threshold is 35 per cent.
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