The Reserve Bank has announced further easing to loan-to-value ratio (LVR) settings – a shift that signals growing confidence in financial system stability and offers welcome breathing room for parts of the property sector.
Under the revised settings, banks can now lend:
- up to 25% of new loans to owner-occupiers with deposits of 20% or less (up from 20%)
- up to 10% of lending to investors with deposits of 30% or less (up from 5%)
What this means for the property sector
For Property Council members – particularly developers, investors, and funders – the implications are significant. Increased credit availability is expected to stimulate demand across residential markets and align with an expected softer Official Cash Rate over the coming year.
Property Council continues to monitor these macro-prudential settings closely, ensuring members’ perspectives are represented as the Reserve Bank balances resilience with growth.
Author | Leonard Hong
An accomplished economist and public policy professional, Leonard brings a global perspective and analytical edge to Property Council New Zealand’s advocacy team.
With a background spanning macroeconomics, international political economy, and urban development policy, Leonard’s career has taken him from the New Zealand Parliament to leading think tanks and industry bodies across the Asia-Pacific.
Passionate about evidence-based policy and the intersection of economics, cities, and governance, Leonard’s work supports Property Council’s mission to create thriving, well-designed communities across Aotearoa New Zealand.