LVR restrictions promote financial stability by limiting high-risk mortgage lending. This is done with the aim of reducing the impact and severity of housing market corrections by increasing the resilience of the banking system and households. Feedback was sought from registered banks in late April on the implementation of the proposal. Following a review of the feedback received, the decision has been made to proceed with easing the restrictions. Deputy Governor Christian Hawkesby thanked industry participants for their constructive feedback. “In making this decision it is important to reiterate our assessment that ... (full story)