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Market
Are major banks in New Zealand compliant with new DTI rules by the end of 2024?
5
Resolution / Starting Odds
Compliant • 50%
Non-compliant • 50%
Audit reports or compliance reviews published by the Reserve Bank of New Zealand
Story
RBNZ Eases LVR, Tightens DTI Lending Rules Effective July 1
May 28, 2024, 01:47 AM
The Reserve Bank of New Zealand (RBNZ) has announced significant changes to its lending rules, effective from July 1. The central bank confirms loosening of loan-to-value ratio (LVR) restrictions while simultaneously implementing new debt-to-income (DTI) restrictions. These new DTI rules will limit the amount of high-DTI lending that banks can undertake, allowing only 20% of their lending to exceed specified limits. Additionally, banks will be restricted to lending no more than six times a borrower's annual pre-tax income for house purchases. These measures aim to balance the housing market by tightening some home loan rules while providing some relief through eased LVR restrictions.
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No significant issues found • 33%
Minor compliance issues found • 34%
Major compliance issues found • 33%
Implement similar controls • 33%
No change in controls • 33%
Revise existing controls without major overhaul • 34%
Resolve all regulatory issues • 33%
Still under probe • 33%
New regulatory issues emerge • 34%
No banks fail to comply • 25%
1-5 banks fail to comply • 25%
6-10 banks fail to comply • 25%
More than 10 banks fail to comply • 25%
Changes implemented • 50%
No changes • 50%