The evidence continues to accumulate showing that the Reserve Bank of New Zealand’s (RBNZ) recent loan-to-value ratio restrictions targeting investors has been successful in cooling mortgage demand amid record population growth.
Last week, the RBNZ revealed that the share of mortgages going to investors, as well as the share of interest-only mortgages has fallen materially since the new rules officially came into effect on 1 October 2016 (although banks began informally applying the rules since they were first announced in mid-July 2016):
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