The Reserve Bank (RBNZ) has confirmed "activation" of the new debt-to-income (DTI) restrictions, along with the related loosening of loan to value ratio (LVR) limits. The new DTI restrictions will create limits on the amount of high-DTI lending that banks can make (i.e. Banks have previously been given 12 months to prepare their systems for the possible implementation of DTI restrictions. The current LVR settings are:15% limit for loans with LVR above 80% for owner occupiers, and5% limit for loans with LVR above 65% for investors. In a statement announcing introduction of the new limits, RBNZ Deputy Governor Christian Hawkesby said DTIs and LVRs are complementary.

Source: Stuff May 28, 2024 14:22 UTC