Reserve Bank Policy on Residential Property Investors

Jun 4, 2015 | News

The Reserve Bank of New Zealand (RBNZ) released its decisions about bank capital adequacy requirements for residential property investment mortgage loans and a regulatory impact statement on 29 May 2015. A consultation document was released on 3 June 2015.

The RBNZ first proposed changes in September 2014 and has consulted on the issue several times in the intervening period. The changes will require non-owner occupied mortgage loans to not exceed 70% LVR and banks to hold greater capital in reserve for these types of loans. The changes will take effect from 1 October 2015.

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