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The Shift Aotearoa On LVR Loosening
Last week the Reserve Bank removed the LVR restrictions for an initial 12 month period. The reasons were three-fold: to utilise the counter-cyclical nature of the LVR restrictions (ie, to stimulate the economy), to avoid confusion for banks extending lending to customers impacted by COVID-19 in regard to LVR limits, and as a means for the Reserve Bank itself to respond to COVID-19.
The restrictions increased costs for some developers and community housing providers so for some this will be a welcome change. It is also a positive signal for families who may access more and better support from their banks at this time.
A submission by The Shift Aotearoa identified potential risks associated with the change related to the absence of other limitations on lending, and the inability to ensure additional lending is reserved for or reaches families in need. Read the submission here.
Thoughts or queries on it? CHA welcomes your engagement on this submission by The Shift Aotearoa - please contact me here.
-- By Brennan Rigby, Project Lead for the Shift Aotearoa
Community Housing Aotearoa
Nga Wharerau o Aotearoa
Community Housing Aotearoa is the peak body for New Zealand's community
housing sector. Our 110 members build and manage affordable and social housing.
Our Vision is to make sure every New Zealander is well-housed in a warm, safe, dry
and affordable home. This is a basic human right.
We work to support the growth and development of community housing providers to
enable them to provide affordable and social housing.
We want to demonstrate that community housing is a critical element alongside
private and government owned housing. No one can do it alone.
Community Housing Aotearoa aims to:
- be the voice of the community housing sector
- build capacity and foster collaboration
- promote best practice in housing policy
- champion quality and excellence.
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