The Reserve Bank of New Zealand (RBNZ) announced on Tuesday plans to ease mortgage loan-to-value ratio (LVR) restrictions starting December 1, citing house prices that are now aligned with sustainable estimates following a sustained decline. From December 1, banks will be allowed to allocate up to 25% of new loans to owner-occupiers with deposits of less than 20% of the property’s value, up from the current limit of 20%. “Easier LVR settings will give banks more flexibility to lend, improving market efficiency and access to credit, particularly for first-home buyers,” said Reserve Bank of New Zealand Acting Assistant Governor Angus McGregor, in a statement reported by Reuters. House prices are currently about 16% below their peak in 2021, with fresh data from the Real Estate Institute of New Zealand showing a 1.5% year-on-year decline in prices in September.