The reserve bank has decided to relax the high LVR (Loan to value ratio) restrictions from the 1st January 2019
- Up to 20% (increased from 15%) of new mortgage loans to owner occupiers can have deposits of less than 20%.
- Up to 5% of new mortgage loans to property investors can have deposits of less than 30% (lowered from 35%).
The moves to loosen the rules for owner-occupiers will be especially welcomed by first home buyers. However, the decision to also relax the rules for investors – which were a key part in reining in the housing market after they were introduced in 2016 – may be seen as more contentious and risky.
November 28, 2018 – 09:08am, David Hargreaves