Source: Reserve Bank of New Zealand – Te Pūtea Matua
14 August 2026
The Reserve Bank of New Zealand – Te Pūtea Matua’s Financial Policy
Committee (FPC) has decided to maintain current LVR settings in its
annual review of macroprudential policy.
“We review settings annually to ensure they remain appropriate given
housing market conditions and financial stability risks. This forms part
of the macroprudential policy framework published earlier this year,”
explains Assistant Governor Financial Stability, Angus McGregor.
In reaching its decision, the FPC considered a range of information,
including house price developments, the risk profile of recent mortgage
lending, financial strain amongst existing borrowers, and the resilience
of the banking system.
“Housing risks are currently contained. 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,” Mr
McGregor said.
Accordingly, the FPC decided to maintain the current LVR restrictions
which have been in place since December last year:
* For owner occupiers, allowing up to 25% of new lending to have an
LVR above 80%.
* For investors, allowing up to 10% of new lending to have an LVR
above 70%.
“Debt-to-income (DTI) restrictions also remain in place. These
complement LVR restrictions and are an important guardrail against the
build-up of high-risk lending, particularly during periods of low
interest rates and strong housing demand,” said Mr McGregor.
We will continue to monitor developments in house prices, mortgage
lending, and broader financial stability risks. The next review of
macroprudential settings is intended to be in around 12 months, but this
can be brought forward if conditions warrant.