Did you know that recently the Reserve Bank changed bank lending criteria for property investors? With restrictions placed on loan-to-value ratios (LVR), investment loans in New Zealand require a larger deposit and are harder to get.
Read on to find out more about the changes that have come into place to restrict property investor lending, and what it means for you.
What Changes Have Been Made to Loan-to-Value Ratio Investment Loans?
As a property investor, you probably know all about loan-to-value ratios. But just to recap, a loan-to-value ratio is a measure of how much a bank lends against mortgaged property, compared to the value of that property.
Current restrictions on LVRs are a form of speed limit on the banks. For the Auckland region, investors require a 30% deposit and for other areas a 20% deposit is required. At iLender we have great solutions for property investors up to 90%, even in Auckland.
How Will This Affect First Time Investors?
First time investors should not be put off by the banks insisting on higher deposits as at iLender we have great solutions requiring only a 10% deposit in most cases.
How Will Existing Property Investors Be Affected?
Existing investors have been hit by the new Reserve Bank restrictions and some have found that they are unable to extend their portfolio using their current bank contacts.At iLender we have great solutions to assist those wishing to expand their portfolio.
Talk to a Qualified Mortgage Broker for More Solutions
If you’re worried about how the loan-to-value ratio restrictions will affect your property investment, talk to a professional mortgage broker for advice. As specialists in the property field, they’ll be able to provide you with all the up-to-date information about investment loans and any changes in the industry.
Mortgage brokers such as iLender can also offer you alternatives to bank loans. With over 20 years experience in mortgage brokering, the team at iLender can offer you expert advice and solutions, including loans of up to 90%, compared to the banks 70%.
Call 0800 LENDER (0800 536 3370800 536 337) or contact us online to find out more about our property investment services and how we can help you.