PHOTO: CAMERON BURNELL / STUFF- Reserve Bank acting governor Grant Spencer tied the relaxation of mortgage lending rules to the expectation that new Government policies would “have a dampening effect on the housing market”
New Zealand’s top central banker has warned buyers that a move to ease lending rules is not an attempt to breath life into the housing market.
On Wednesday the Reserve Bank announced a surprise move to lift the amount of lending banks can do to borrowers with deposits of less than 20 per cent from January 1, a slight relaxation of loan to value ratio (LVR) restrictions.
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