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 LVR restrictions to manage lending risk, affecting how much deposit you need.
Generally, owner-occupiers need a 20% deposit (80% LVR) and investors need 30% (70% LVR). However, important exemptions exist:
- New builds are exempt from LVR restrictions.
- The First Home Loan scheme can help eligible buyers purchase with a 5% deposit.
These rules can make buying trickier but aim to stabilize the market.
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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