WELLINGTON (CU)_A couple of months ago, the Reserve Bank of New Zealand confirmed its decision to increase loan-to-value restrictions on owner-occupied home loans, with the aim of tackling the unsustainable surge in house prices which was expected to increase risks to economic and financial stability. Under the new regulations, since 1 November, banks have been barred from lending more than 10 per cent of new loans to owner-occupiers with deposits of less than 20 per cent.
Accordingly, this week, Wellington-based Kiwibank warned borrowers with existing preapprovals that they may not be able to…
