NZ investor mortgage lending halves on macroprudential

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By Leith van Onselen

Data released by the Reserve Bank of New Zealand (RBNZ) revealed that property investor lending has cooled materially since the RBNZ implemented new loan-to-value ratio (LVR) restrictions targeting investors, which officially came into effect on 1 October 2016, although banks began informally applying the rules since they were first announced in mid-July 2016.

According to the RBNZ, the value of investor mortgages taken out in June 2017 was down by 50% versus June 2016, whereas the number of mortgages was down 43%. In the hotspot of Auckland, the value of investor mortgages was down 43% year-on-year, whereas outside of Auckland investor mortgages were down 65%.

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.