Following consultation, the Reserve Bank of NZ has confirmed the return of more stringent loan-to-value ratio (LVR) restrictions, saying it has financial stability concerns over “evidence of a speculative dynamic emerging with many buyers becoming highly leveraged”. LVR restrictions were removed in April 2020 to ensure they didn’t interfere with Covid-19 policy responses. From 1 March, LVR restrictions for owner-occupiers will be reinstated to a maximum of 20 per cent of new lending at LVRs above 80 per cent. LVR restrictions for investors will be reinstated to a maximum of 5 per cent of new lending at LVRs above 70 per cent. However, from 1 May 2021, LVR restrictions for investors will be further raised to a maximum of 5 per cent of new lending at LVRs above 60 per cent. The restrictions do not apply to new residential construction. The RBNZ says it has completed its assessment of which files were illegally downloaded in the recent malicious data breach at the Bank, and “is notifying” organisations involved. It has engaged specialist national identity and cyber support service IDCARE, to provide advice and support to people affected at no cost to them. Governor Adrian Orr was critical of software provider Accellion in a statement released yesterday, saying: “We had no warning to avoid the attack which began in mid-December. Accellion failed to notify the Bank for five days that an attack was occurring against its customers around the world, and that a patch was available that would have prevented this breach.”