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
A Loan to Value Ratio (LVR) measures your loan size against a property's value. The Reserve Bank of New Zealand sets these rules to limit risky lending and cool the property market.
Generally, owner-occupiers need a 20% deposit (80% LVR) and investors need a 30% deposit (70% LVR). However, new builds are exempt from these restrictions, and banks have a limited allowance for high-LVR loans. Government schemes like the First Home Loan also help buyers with smaller deposits.
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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