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A few months back, the Reserve Bank of New Zealand (RBNZ) released a study showing that its loan-to-value ratio (LVR) caps had fundamentally de-risked the housing market:
The report found that prior to the introduction of LVRs in October 2013, the average new mortgage was for 67% of a property’s value.
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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.