The Reserve Bank has indicated that it has been reviewing the loan to value ratio (LVR) rules, which were introduced to try and cool the property market in 2015. The Reserve Bank has indicated that it has been reviewing the loan to value ratio (LVR) rules, which were introduced to try and cool the property market in 2015. The Royal Commission in Australia was also putting pressure on the New Zealand banks' parent companies which was likely to keep credit conditions tight even if rules LVR rules were relaxed, she said. Economists say it's a matter of when not if the Reserve Bank will moves to relax rules. The Loan to value ratio (LVR) rules*InvestorsInvestors mortgages issued with less than a 35 per cent deposit are deemed high-LVR.

Source: Otago Daily Times November 25, 2018 21:33 UTC