LVR review phase 1 done – Colliers auction – One sells, one passed in at City Sales
Reserve Bank governor Adrian Orr said today the bank would ease its loan:value ratio (LVR) restrictions on banks’ new mortgage loans from 1 January.
The Reserve Bank released a consultation paper yesterday proposing changes to loan:value ratio (LVR) restrictions to further mitigate risks to financial stability arising from the current boom in house prices.
The Reserve Bank announced changes to the loan:value ratio (LVR) restrictions on Auckland housing today, to take effect from 1 October.
Harcourts chief executive Hayden Duncan said yesterday the Reserve Bank’s loan:value ratio “speed limit” restrictions hadn’t greatly affected the property markets they were supposed to – Auckland & Christchurch – but had affected first-homebuyers outside those 2 cities, where sales & prices continued to dip or remain stagnant.
Reserve Bank governor Graeme Wheeler said on Wednesday financial pressures had eased since the bank introduced its loan:value ratio “speed limit” a year ago, but not enough to lift the restrictions.