RBNZ defers start of LVRs from 1 Sept to 1 Oct

RBNZ defers start of LVRs ( Loan-to-value ratio restrictions) from 1 Sept to 1 Oct, Stuff NZ reports.

As Stuff NZ notes: "In mid-July the Reserve Bank announced new tighter restrictions on residential lending, including a requirement for no more than 5 per cent of bank lending to residential property investors to those with less than 40 per cent equity. The new rules also saw the Reserve Bank planning to force banks to sharply restrict their loans to owner-occupiers to borrowers with less than a 20 per cent deposit."

"Banks have indicated through their submissions that more time is required to enable them to meet the new restrictions that apply to investor loans nationwide, given the pipeline of loan pre-approvals made prior to our announcement in July," deputy governor Grant Spencer said, Stuff reports.