November 28, 2018
This morning the Reserve Bank announced it would be making it easier for homebuyers to get loans with deposits of less than 20% in the new year.
Reserve Bank Governor Adrian Orr says,
“both mortgage credit growth and house price inflation have eased to more sustainable rates, reducing the riskiness of banks’ new housing lending. In response, we are easing our loan-to-value ratio (LVR) restrictions on banks’ new mortgage loans. If banks’ lending standards are maintained we expect to further ease LVR restrictions over the next few years.”
From 1 January 2019:
Up to 20 percent (increased from 15 percent) of new mortgage loans