Buying guide
Loan to value ratios | Guide to LVR restrictions in NZ
What exactly does LVR mean and how could it affect your home loan?
AI summary
Understanding Loan to Value Ratio (LVR) restrictions, set by the Reserve Bank, is crucial for property buyers. These rules limit how much you can borrow against a property's value.
Generally, owner-occupiers need a 20% deposit for existing homes, while investors need 30%. However, new builds are exempt from these LVR restrictions. Other exemptions include First Home Loans, underwritten by Kāinga Ora, which can allow first home buyers to purchase with as little as a 5% deposit.
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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