Photo: Getty ImagesThe Reserve Bank (RBNZ) is proposing to impose a new type of mortgage lending restriction on banks from the middle of the year. "We believe introducing DTI restrictions will reduce financial stability risks, support house price sustainability, and fill a gap that is not covered by existing policies. "Introducing DTI restrictions will also allow us to loosen LVR settings without increasing risks to financial stability." The RBNZ believed DTI restrictions would only really affect the housing market once it picked up. The RBNZ was empowered by the previous Labour-led Government to impose DTI restrictions.

Source: Otago Daily Times January 23, 2024 00:24 UTC