The Reserve Bank's continuing to change its approach to preventing risky lending. 

It's further easing loan-to-value-ratio restrictions, allowing banks to lend more money to low-deposit borrowers. 

It follows the roll-out of debt-to-income restrictions last year, restricting how much banks can lend to people who already have a lot of debt relative to their income. 

Squirrel Mortgages Chief Executive David Cunningham told Mike Hosking LVRs had been imperfect on their own. 

He says when property prices went up, it allowed banks to lend more, pushing up property prices further, with borrowers' incomes not factored in. 

LISTEN ABOVE 

The Reserve Bank's continuing to change its approach to preventing risky lending.&nbsp;
It's further easing loan-to-value-ratio restrictions, allowing banks to lend more money to low-deposit borrowers.&nbsp;
It follows the roll-out of debt-to-income restrictions last year, restricting how much banks can lend to people who already have a lot of debt relative to their income.&nbsp;
Squirrel Mortgages Chief Executive David Cunningham told Mike Hosking LVRs had been imperfect on their own.&nbsp;
He says when property prices went up, it allowed banks to lend more, pushing up property prices further, with borrowers' incomes not factored in.&nbsp;
LISTEN ABOVE&nbsp;

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Open your mind to the world with New Zealand’s number one breakfast radio show. Without question, as New Zealand’s number one talk host, Mike Hosking sets the day’s agenda. The sharpest voice and mind in the business, Mike drives strong opinion, delivers the best talent, and always leaves you wanting more. The Mike Hosking Breakfast always cuts through and delivers the best daily on Newstalk ZB.

Open your mind to the world with New Zealand’s number one breakfast radio show.

Without question, as New Zealand’s number one talk host, Mike Hosking sets the day’s agenda.

The sharpest voice and mind in the business, Mike drives strong opinion,...

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David Cunningham: Squirrel Mortgages CEO on the Reserve Bank easing loan-to-value-ratio restrictions

https://api.omny.fm/orgs/7784f840-c291-422a-924b-ad9000bbad71/clips/2bb90946-e98b-49ad-a34e-b3760136bc40/transcript

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