The Reserve Bank of New Zealand (RBNZ) said on Tuesday it would seek views on its plan to resume loan-to-value ratio (LVR) restrictions on mortgage lending from March next year.
RBNZ said it was concerned that increases in highly-leveraged borrowing, if continued, could lead to emerging risks to financial stability.
"We are proposing to reinstate the LVR restrictions at the same level as prior to the onset of COVID-19," it said.
RBNZ will accept submissions until Jan. 22, 2021 and the decision will be issued in February.
(Reporting by Renju Jose; Editing by Chris Reese)
