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
Loan to Value Ratio (LVR) restrictions, set by the Reserve Bank, limit how much you can borrow. For existing properties, owner-occupiers typically need a 20% deposit (80% LVR), while investors need a 30% deposit (70% LVR).
These rules aim to ensure financial stability but can make buying difficult. However, exemptions are available. New builds have no LVR restrictions, and government support like the First Home Loan scheme can help eligible buyers 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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