The Reserve Bank of New Zealand’s Financial Policy Committee has maintained its loan-to-value ratio (LVR) restrictions following its annual macroprudential policy review, concluding that housing risks remain contained. Up to 25% of new owner-occupier lending may have an LVR above 80%, while up to 10% of new investor lending may have an LVR above 70%. The decision reflects broadly flat national house prices in recent years, modest mortgage lending growth and a manageable share of higher-risk lending. Debt-to-income restrictions also remain in place as a complementary guardrail against the accumulation of high-risk lending, particularly when interest rates are low and housing demand is strong. The Reserve Bank intends to review its macroprudential settings again in around 12 months, although it may bring the review forward if conditions warrant.
Reserve Bank of New Zealand2026-08-14
Reserve Bank of New Zealand maintains mortgage loan-to-value ratio restrictions after annual review
The Reserve Bank of New Zealand has maintained its existing mortgage LVR restrictions after concluding that housing risks remain contained. The current allowances for higher-LVR owner-occupier and investor lending remain unchanged, alongside existing debt-to-income restrictions. The next review is intended in around 12 months but may be brought forward.