The Reserve Bank had issued a letter to banks about a week ago asking for comments around their proposal to remove the mortgage loan-to-value ratio(LVR) restrictions. The banks had until close of business today to comment on the proposals before a decision was made. If these restrictions are removed then this will be welcomed by not just first home buyers or investors but those who are self employed who need extra cashflow which can be borrowed against their home.

Westpac have today reduced their special home loan rates. Check out how their rate changes compare across the 8 New Zealand banks.