RBNZ new housing rules proposal - more detail

Earlier headlines are here: AUD and NZD slip a few points - RBNZ proposes housing limits to tighten

• More detail on the proposals:
  New LVR limit of 60% would be set for landlords across the country, essentially extending and lowering the current limit for Auckland investors of 70%
• In a consultation paper proposing changes to loan-to-value restrictions (LVRs) "to further mitigate risks to financial stability arising from the current boom in house prices."
• "The banking system is heavily exposed to the property market with residential mortgages making up 55 percent of banking system assets. Investor lending has been increasing rapidly and is a significant contributing factor to the current market strength. The proposed restrictions recognise the higher risks associated with such lending," Governor Graeme Wheeler said.
• Loans exempt from the restrictions, including loans to build new homes, would continue to be exempted.

via Interest NZ