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New Zealand Central Bank Maintains Loan-to-Value Ratio Restrictions Amid Contained Housing Risks

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The Reserve Bank of New Zealand (RBNZ) on Friday left loan-to-value ratio (LVR) settings unchanged in its annual review of macroprudential policy, noting that housing risks are currently contained.

The current settings, which have been in place since December 2025, allow up to 25% of new lending to have an LVR above 80% for owner occupiers, and up to 10% of new lending to have an LVR above 70% for investors.

"Nationally, house prices have remained broadly flat in recent years, while mortgage lending growth has been modest and the share of higher-risk lending remains manageable," said Angus McGregor, the central bank's assistant governor of financial stability.

He added that debt-to-income restrictions, which complement LVR settings as a guardrail against the accumulation of high-risk lending, also remain in place.

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