Overview
- The plan would lift the share of new owner‑occupier loans allowed with deposits under 20% to 25%, and raise the investor allowance with under 30% deposits to 10%.
- The changes are slated to take effect on 1 December following consultation with banks, with oversight by the newly formed Financial Policy Committee.
- Debt‑to‑income limits introduced in 2024 remain in place, generally capping most owner‑occupier loans at six times income and investor loans at seven.
- RBNZ data show that in August $991 million of $7.5 billion in new lending exceeded 80% LVR, indicating a relatively small base of high‑LVR borrowing.
- Economists say the adjustment should have little impact on house prices, though it may ease access for first‑home buyers; the finance minister welcomed the move.