The Reserve Bank has announced it's easing the LVR (loan to value ratio) restrictions, which is good news for low deposit borrowers and investors. This will take effect from January 1, 2019.
The change means for owner occupier lending over 80% LVR the restriction moves from 15% of all banks lending to 20%. For investors the LVR limit changes from 65% to 70%.
With mortgage credit growth and house price inflation easing, the Reserve Bank saw the need to ease the restrictions.