New Zealand's Reserve Bank introduces Debt-to-Income (DTI) restrictions to control high-DTI lending and complement Loan-to-Value Ratio (LVR) restrictions.
New Zealand's Reserve Bank has activated Debt-to-Income (DTI) restrictions, setting limits on high-DTI lending. This complements Loan-to-Value Ratio (LVR) restrictions, which control low-deposit lending. DTI restrictions target borrowers' ability to repay debt, while LVR restrictions focus on potential losses in case of a housing downturn. Both measures aim to reduce risks to the financial system.
May 27, 2024
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