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There is increasing interest in loan-to-value (LTV) and debt-service-to-income (DTI) limits as many countries face a new round of rising house prices. Yet, very little is known on how these regulatory instruments work in practice. This paper contributes to fill this gap by looking closely at their use and effectiveness in six economies—Brazil, Hong Kong SAR, Korea, Malaysia, Poland, and Romania. Insights include: rapid growth in high-LTV loans with long maturities or in the number of borrowers with multiple mortgages can be signs of build up in systemic risk; monitoring nonperforming loans by loan characteristics can help in calibrating changes in the LTV and DTI limits; as leakages are almost inevitable, countries strive to address them at an early stage; and, in most cases, LTVs and DTIs were effective in reducing loan-growth and improving debt-servicing performances of borrowers, but not always in curbing house price growth.

Financial risk management --- Bank loans --- Housing --- Dwellings --- Home prices --- House prices --- Housing prices --- Residential real estate --- Bank credit --- Loans --- Risk management --- Data processing. --- Management. --- Prices. --- Prices --- Macroeconomics --- Money and Monetary Policy --- Real Estate --- Industries: Financial Services --- Financial Markets and the Macroeconomy --- Central Banks and Their Policies --- Banks --- Depository Institutions --- Micro Finance Institutions --- Mortgages --- Financial Institutions and Services: Government Policy and Regulation --- Housing Supply and Markets --- Monetary Policy, Central Banking, and the Supply of Money and Credit: General --- Finance --- Property & real estate --- Monetary economics --- Macroprudential policy instruments --- Credit --- Financial institutions --- Money --- Financial sector policy and analysis --- Economic policy --- Hong Kong Special Administrative Region, People's Republic of China