Data released by the Reserve Bank of New Zealand (RBNZ) yesterday revealed that property investor lending has continued to cool after 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 October 2017 was down by 17% versus October 2016, whereas the number of mortgages was down 15%. In the hotspot of Auckland, the value of investor mortgages was down 21% year-on-year, whereas outside of Auckland investor mortgages were actually up 5%.
