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Market
Do high-DTI loans increase in number in the second half of 2024?
5
Resolution / Starting Odds
Increase • 50%
Decrease • 50%
Financial reports from major New Zealand banks or Reserve Bank of New Zealand lending statistics
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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Similar markets
Increase significantly • 25%
Increase slightly • 25%
Remain stable • 25%
Decrease • 25%
More domestic borrowing • 33%
More external borrowing • 33%
Balanced borrowing • 33%
Increase in interest rates • 25%
Decrease in interest rates • 25%
No change in interest rates • 25%
Introduction of new monetary policy • 25%
