DTI and LVR rules
Two Reserve Bank settings shape how much banks can lend: a cap on debt relative to income, and limits on lending to borrowers with small deposits.
Last updated 2024-07-01 · Official source: RBNZ — macroprudential policy
Debt-to-income (DTI) caps
| Borrower type | Cap | Speed limit |
|---|---|---|
| Owner-occupier | 6× income | 20% of new lending may exceed it |
| Investor | 7× income | 20% of new lending may exceed it |
All debt counts: mortgage + car + personal + student loan balance + credit-card limits. The 20% speed limit was NOT changed by the 1 December 2025 LVR easing; DTI settings remain 6x/7x with a 20% allowance, confirmed current. Effective from 2024-07-01.
Loan-to-value (LVR) restrictions
| Borrower type | High-LVR threshold | Speed limit |
|---|---|---|
| Owner-occupier | 80% LVR (under 20% deposit) | 25% |
| Investor | 70% LVR (under 30% deposit) | 10% |
Effective from 2025-12-01. Banks may write up to 25% of new owner-occupier lending above 80% LVR (i.e. under 20% deposit). Eased from 20% to 25% on 1 Dec 2025.
Exemptions
| Rule | Exempt lending |
|---|---|
| DTI | Kāinga Ora / First Home Loans · refinance with no increase in lending · portability · bridging finance · remediation · new builds / construction |
| LVR | new builds · First Home Loans |
Exemptions are set by the Reserve Bank and applied by lenders — a lender's own criteria still apply on top.
Last updated · 24 July 2026
Confirm figures against the official source before acting. Methodology · Corrections.