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Financial stability strengthened by firmer LVR restrictions


Release date
09 February 2021
The Reserve Bank of New Zealand – Te Pūtea Matua is putting in place more stringent loan-to-value ratio (LVR) restrictions to reduce the risks to financial stability caused by high-risk mortgage lending. The LVR restrictions do not apply to new residential construction.
LVR restrictions were removed in April 2020 to ensure they didn’t interfere with COVID-19 policy responses aimed at promoting cash flow and confidence, Reserve Bank Deputy Governor and General Manager of Financial Stability Geoff Bascand says.
“Since then, in part due to the success of the health and economic policy responses, we have witnessed a rapid acceleration in the housing market, with new records being set for the national median price, and new mortgage lending continuing at a strong pace. ....

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Latest changes in residential tenancy act can shift "renting" and "investment property buying" in NZ.


Latest changes in residential tenancy act can shift “renting” and “investment property buying” in NZ.
Thursday, February 11, 2021
Sandeep Singh
The latest changes in Residential Tenancy Act 1986 which come into force from Thursday, February 11 has the potential to shift the landscape of renting, and investment property buying, in this country.
Right now, the unfettered rights enjoyed by the landlords, vis a vis tenants in residential property, has been one of the biggest motivators for new investors to take a plunge in investment property buying and contributing in heating up of the housing market.
The ability of the landlord to evict tenants almost at will and impose an increase in rents, again without much regulation has kept the experience of renting at best interim, while enhancing the experience of property investment as exhilarating and luxurious. ....

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