Reserve Bank


PHOTO: STUFF – The Reserve Bank is pondering the future of loan-to-value restrictions.

There are predictions restrictions on home loan lending could ease as soon as next Wednesday.

The Reserve Bank will release its latest Financial Stability Report on November 28.

ASB chief economist Nick Tuffley said it was possible that it might choose that moment to start to unwind the loan-to-value restrictions that limit how much lending banks can do to borrowers with small deposits.

At the moment, only 15 per cent of new lending can be to owner-occupiers with equity of less than 20 per cent. Another 5 per cent can be to investors with equity of less than 35 per cent.




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