Buying guide
LVR explained: what loan to value ratios mean for your mortgage
What exactly does LVR mean and how could it affect your home loan?
AI summary
Understanding Loan to Value Ratio (LVR), set by the Reserve Bank, is crucial for securing a home loan. These rules dictate your minimum deposit.
Generally, owner-occupiers need a 20% deposit (80% LVR), while investors require 30% (70% LVR). However, key exemptions exist, including for new builds, which have no LVR restrictions. Banks also have a limited allowance for high LVR lending, often assisting first-home buyers, and government schemes like First Home Loans provide further options.
What does LVR mean?
What are LVR restrictions?
Current LVR restrictions in NZ
Owner occupiers
Investors
You may be able to gte a high LVR loan but chances are you will pay extra for it.
Exemptions to the LVR rules
High LVR borrowing
New builds
First Home Loans
Bridging Loans
Remediation
Refinancing
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High LVR borrowing can be risky.
How could LVR restrictions affect you?
Getting professional advice to work with LVRs
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