The Reserve Bank has rejected claims that its curbs on low-deposit mortgage lending will have the perverse effect of reducing the amount of new housing.

In a speech to the Property Council in Auckland yesterday, deputy governor Grant Spencer reiterated why the bank has imposed a limit on high loan-to-value ratio (LVR) lending, what its best guess of the impact is and the indicators it will watch to decide when to lift the restrictions.

via Reserve bank boss backs loan rules – Property – NZ Herald News.