LVR Restrictions for Property Investors

by Mar 2, 2016Mortgages, Property investment


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.

About iLender

At iLender we put your best interests first and not the Bank – our advice is unbiased as all Lenders who we do business with pay about the same in commissions.

Although we are Auckland based Mortgage Brokers, we help customers everywhere in New Zealand and overseas with buying property in New Zealand, as we are very much about online and giving advice here and now!

How to prepare your personal finances when applying for a mortgage

When it comes to securing a competitive home loan, saving up for a deposit is just one piece of the puzzle. Lenders also need to be confident that you’re trustworthy, reliable and financially secure - in other words, you’re someone who’s capable of making mortgage...

When is the right time to refix or refinance my mortgage?

When your fixed rate mortgage comes to the end of its term, most lenders will automatically transfer you to a new fixed rate or floating rate home loan.  As a homeowner, this type of set-and-forget arrangement might sound convenient, but it also means that you...

Struggling to save up for a 20% deposit? Here are your options

Struggling to save up for a house deposit? You’re not alone. Buyers across the country are feeling the effects of a booming property market, with the latest real estate figures showing that the median house price increased more than 25 percent over the past year to a...

The 5 big benefits of Property Investing

Rental property is a popular and profitable form of investment. Buying the right investment property can provide strong capital gains and regular income, while being able to leverage real estate opens up new opportunities for creating wealth.  Thinking about...

Best mortgage rates, 10% deposit owner occupied and 20% rental purchase, self employed with no financials and help for those with bad credit or arrears.

Hundreds of reviews on TradeMe and Google makes us your ‘Number 1’ choice.

Call 0800 536 337