Demystifying Loan-to-Value Ratios (LVR) in New Zealand

Dec 6, 2023 10:55:52 AM

Since October 2013, when the Reserve Bank of New Zealand (RBNZ) first introduced loan-to-value ratio restrictions (LVR), home buyers in New Zealand have been grappling with deposit requirements. LVRs play a vital role in home loan assessment and can determine how much home buyers may be able to borrow from a lender. In this comprehensive guide, find out what LVRs are and what exemptions may apply, how LVRs impact home buyers, and how to get around LVRs.


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Topics: Property Investment, First Home Buyer, loan to value ratio, Low Deposit

Potential Opportunities for Property Investors

Oct 6, 2023 12:00:00 AM

A change in government could see more opportunities open up for property investors in New Zealand, with adjustments to the Brightline Test, removal of the foreign buyer ban, and a reinstatement of interest deductibility just some of the policies being considered. Find out how these possible changes could reshape the property market landscape and what the overall impact would be for property investors.


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Topics: Property Investment, Buying and selling

New Zealand’s Housing Market is Primed for a Rebound

Jun 23, 2023 2:43:53 PM

New Zealand’s housing market has seen its fair share of ups and downs over the years, with the most recent drop in property prices linked to interest rate rises and cost of living pressures. But the tide may be turning, and there’s growing evidence to support a property rebound sooner than anticipated. Buyers choosing to wait for property prices to go lower should consider the impact that decision could have on borrowing power once property prices go up.


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Topics: Property Investment, First Home Buyer, Financial Advice, Buying and selling

Is Buying Property Still a Safe Bet?

Mar 29, 2023 2:56:55 PM

Property values may be falling across New Zealand’s main centres*, with demand largely being restrained by the Reserve Bank’s interest rate hikes, but, not surprisingly, first home buyers are feeling positive about more opportunities to get into the property market. For existing homeowners, the outlook for property remains positive too, as factors such as interest rate, a thriving labour market, strong migration, and a downturn in supply continue to drive demand, ensuring property remains a safe bet.


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Topics: Property Investment, Mortgage Advice, Buying and selling

The Future of Property in New Zealand

Mar 27, 2023 11:03:13 AM

Demand for housing in New Zealand may be at an all-time high, but recent climate change and extreme weather events have highlighted the importance of sustainable design when it comes to future building projects. Green buildings, eco-homes and sustainable design must be considered, while environmental responsibility and resource efficiency is critical if we are to preserve the future of housing in New Zealand. Read on to find out what green building is, what the benefits are, and how New Zealand can prepare for a sustainable future in building.


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Topics: Property Investment, Financial Advice, Buying and selling

Specialist Property Investment Lending

Jul 21, 2022 3:01:18 PM

Inflation is at its highest level in 30 years, mortgage interest rates are on the way up, and the Reserve Bank of New Zealand (RBNZ) has just announced  to the OCR. It’s a challenging time that has many property investors weighing up their investment options. However, despite its ups and downs, investing in property remains a popular investment strategy for Kiwis. Read on for more about a specialist investment lending product.


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Topics: Property Investment, Investment Property, Investment Opportunity

What to Look for in an Investment Property

Mar 11, 2022 11:47:59 AM

Investing in property is a smart financial decision that can help you grow wealth and generate a passive income. But just like all investments, property investment can be risky too, which is why it’s so important to do detailed research before diving in. Whether you're just starting out investing in property or adding to an already significant property portfolio, here are some things to look for when buying an investment property.


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Topics: Property Investment, Financial Health

The Benefits of Property Investment

Feb 17, 2022 10:44:49 AM

Property investment in New Zealand continues to be a hot topic, despite tighter loan to value restrictions aimed at investors, and stricter lending conditions that have been put in place to ease demand and slow house price rises. Savvy investors with a growing property portfolio stand to benefit from excellent capital gains and a sound investment for future wealth. However, there are some risks and it’s important to balance these with the benefits of property investment. Here’s a brief look at some of the benefits of property investment, as well as the risks.


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Topics: Mortgage Advisers, Property Investment, Home Loans

New Build Finance: Understanding Construction Loans

Jan 18, 2022 5:15:35 PM

There are many reasons why home buyers choose to build new instead of buying an existing property. For some, being able to tailor-make a home that exactly fits requirements, built to specific design and layout preferences is important. While for others, a low maintenance home with the latest innovations in home ventilation, heating and eco-friendly features is a must. Whatever your reasons for building new, it’s important you’re clear on how construction finance will impact your lending ability.


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Topics: Property Investment, First Home Buyer, Construction Loan

3 Tips for Property Investors Navigating High LVRs

May 19, 2021 3:43:37 PM

In an effort to put the brakes on a runaway property market, from 1 May 2021, the Reserve Bank of New Zealand has implemented Loan to Value Ratio (LVR) restrictions that impact the way property investors access mortgage finance. Going forward, a maximum of just 5 per cent of banks’ lending can be done at above 60 per cent LVR. For property investors, that means having at least a 30 – 40 per cent deposit. Here are 3 tips that could help property investors navigate high LVRs.


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Topics: Selling, Property Investment, Interest Rates