The Shift Aotearoa On LVR Loosening

Monday, 4 May 2020, 6:50 pm
Press Release: Community Housing Aotearoa

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

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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:

1. be the voice of the community housing sector
2. build capacity and foster collaboration
3. promote best practice in housing policy
4. champion quality and excellence.

Contact Community Housing Aotearoa

• Website - communityhousing.org.nz/
• Our Place - Learn how we think this can be achieved
• Phone - +64 4 385 8722
• About us - Our 2021 annual report is online here
• Email - support@communityhousing.org.nz
• Link - Members directory
• Physical Address - Level 11, Ranchhod Tower, 39 The Terrace/102-112 Lambton Quay, Wellington