New Zealand tightens some home loan rules

WELLINGTON, May 28 (Reuters) – New Zealand’s central bank on Tuesday introduced limits on how much housing finance lenders can provide for borrowers who want to take on a high amount of debt relative to their incomes.

The new rules come as policymakers seek to reduce default risk in New Zealand’s housing market, which has seen sharp swings in prices.

Banks will need to comply with the new rules from July 1 and the restrictions will apply to new lending for residential properties for both owner-occupiers and investors, the bank said in a statement.