Click on our Secret Library of Evidence ------>

    BANKILEAKS Secret Library

Loan Application Forms (LAF's)  

    Bank Emails to Brokers  

    Then Click on 'VIEW NOTEBOOK'

Join us on facebook

facebook3           facebook2 


What BFCSA Does...

BFCSA investigates fraud involving lenders, spruikers and financial planners worldwide.  Full Doc, Low Doc, No Doc loans, Lines of Credit and Buffer loans appear to be normal profit making financial products, however, these loans are set to implode within seven years.  For the past two decades, Ms Brailey, President of BFCSA (Inc), has been a tireless campaigner, championing the cause of older and low income people around the Globe who have fallen victim to banking and finance scams.  She has found that people of all ages are being targeted by Bankers offering faulty lending products. BFCSA warn that anyone who has signed up for one of these financial products, is in grave danger of losing their home.


Articles View Hits

Whistleblowers' Corner!

To all mortgage brokers, BDMs and loan approval officers! 
Pls Call Denise: 0401 642 344 

"Confidentiality is assured."

Cartoon Corner

Lighten your load today and "Laugh all the way to the bank!"

Denise Brailey

Led by award-winning consumer advocate Denise Brailey, BFCSA (Inc) are a group of people who are concerned about the appalling growth of Loan Fraud around the world. BFCSA (Inc) is a not for profit organisation in the spirit of global community concern and justice.

Click on the Cluster Map.

  • Home
    Home This is where you can find all the blog posts throughout the site.
  • Categories
    Categories Displays a list of categories from this blog.
  • Bloggers
    Bloggers Search for your favorite blogger from this site.
  • Login
    Login Login form

BFCSA: The Reserve Bank of New Zealand suggests 40% deposit on home loans to avoid collapse of housing.

  • Font size: Larger Smaller
  • Hits: 1212
  • Print

The Reserve Bank of New Zealand has released a consultation paper that proposes new restrictions on home loans that will bring the rest of the country in line with those currently in place in Auckland.

The Reserve Bank of New Zealand suggests 40% deposit on home loans to avoid collapse of housing.


Under the proposed changes, no more than 5% of bank lending to residential property

investors across New Zealand would be permitted with a loan-to-value ratio of greater than 60

per cent, or a deposit of less than 40%.


The loan-to-value ratio (LVR) is a measure of how much a bank lends against mortgaged

property, compared to the value of that property.

For example, the RBNZ stated that borrowers with less than 20 per cent deposit (more than 80

per cent LVR) are often stretching their financial resources.

For owner-occupiers, the proposed changes would mean no more than 10% of lending

would be permitted with an LVR of greater than 80 per cent, or a deposit of less than 20%.

The Reserve Bank considers a sharp correction in house prices to be a key risk to the financial system, and one that is increasing the longer the current boom in house prices persists.


"A severe downturn in house prices could have major implications for the banking system, with

more than 55 per cent of bank assets secured by residential property."

Restrictions would begin from September

The proposed new restrictions would take effect from September and remove the current

lending distinction between Auckland and the rest of the country.

Loans to construct new dwellings however, would continue to be exempt.

"Investor lending has been increasing rapidly and is a significant contributing factor to the

current market strength, the proposed restrictions recognise the higher risks associated with

such lending," said RBNZ governor Graeme Wheeler in a statement.


"A sharp correction in house prices is a key risk to the financial system," he said, adding that a

sharp correction would cause long-lasting damage to households and the broader economy.

Earlier this month, the RBNZ threatened more measures to cool the nation's runaway housing market.


In November 2015, the RBNZ tightened its loan-to-value ratio restriction to 70 per cent for

people borrowing money to buy investment properties in Auckland in response to a renewed

home price surge in that city.



The Reserve Bank of New Zealand introduced loan limits in October 2013, more than a year


before Australia's bank regulator APRA introduced softer and less formal mortgage restrictions.


Last modified on
Rate this blog entry:


  • No comments made yet. Be the first to submit a comment

Leave your comment

Guest Thursday, 28 January 2021