Overview

• The Reserve Bank of New Zealand has opened consultation on lifting banks’ low‑deposit lending allowances to 25 percent for owner‑occupiers and 10 percent for investors.
• Under the proposal, borrowers with less than a 20 percent deposit (owner‑occupiers) or less than 30 percent equity (investors) would be counted within the expanded lending shares, up from current caps of 20 percent and 5 percent.
• The RBNZ says the changes are intended to take effect on 1 December following consultation with banks.
• Officials cite the July 2024 debt‑to‑income limits—generally six times income for most owner‑occupiers and seven times for investors—plus a subdued market and low high‑risk lending as key safeguards.
• Finance Minister Nicola Willis welcomed the move as support for first‑home buyers, and the new Financial Policy Committee will oversee LVR and DTI settings.