A double whammy for Investors with higher LVR restrictions rumoured. It's 30% in AKL - my guess is this will increase to 40 or 50% and the regions will move up to 30%. A change in LVR requirements is said to come first then the debt to income ratio. Hard to believe this is going to end well.
The Banks want to continue to lend so they earn $$ - if there's a max ratio on DSR that's going to affect FHB (unless they're exempt).
So Investors not able to refinance dump properties onto the market - kicking out tenants many of whom will still not qualify to be home buyers. This would be nasty at best - less rentals - more competition, higher rents = poorer standard of living etc.