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) measures your loan size against a property's value. The Reserve Bank of New Zealand sets these rules to manage lending risk.
Generally, owner-occupiers need a 20% deposit (80% LVR) and investors need 30% (70% LVR) for existing homes. Key exemptions exist, including for new builds, which have no LVR restrictions. Banks also have a limited allowance for high-LVR lending, often helping first-home buyers. Government schemes like the First Home Loan can also assist.
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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