NZ home loan limits set to go gradually

Wellington

NEW Zealand central bank's year-old contentious limits on risky house lending are expected to be gradually phased out in the coming year as tame inflation and a slower housing market have reduced the need for them.

For the past year retail banks have been restricted to no more than 10 per cent of new home loans for borrowers with deposits of less than 20 per cent of a property's value - called high loan-to-value ratio lending.