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.
Topics: Property Investment, First Home Buyer, loan to value ratio, Low Deposit
When it comes to choosing a home loan, interest rate is not the only thing to consider. Loan features – like the ability to make extra repayments, a line of credit, an off-set account, or repayment holidays – are just as important. To help you understand what features you could be offered by your lender, we’ve outlined some of the more popular options.
Topics: Buying, LVR, Mortgage, new zealand real estate, First Home Buyer, Second Home, house sales, mortgage ready, property sales, mortgage stress, low equity margin, LEM, loan to value ratio
The 2017 New Zealand election may be out of the way but its impact is still being felt in the NZ property market. Uncertainty continues to weigh in with spring sales noticeably lower than previous years. Nationwide residential property values rose for September, although a much smaller increase was recorded in the Auckland region. Read on to find out how New Zealand’s property market is expected to perform, post-election.
Topics: Buying, LVR, Mortgage, new zealand real estate, First Home Buyer, Second Home, house sales, mortgage ready, property sales, mortgage stress, low equity margin, LEM, loan to value ratio
Changes to the Loan to Value Ratio (LVR) and an overall tightening up on low deposit lending has seen banks and lenders charge a number of additional fees to borrowers with less than a 20% deposit. One of these fees is a Low Equity Margin (LEM); a percentage added to your interest rate that remains there until your loan reduces to the 80% threshold. As a borrower, it’s important you’re clear on exactly how this fee is charged.
Topics: Buying, LVR, Mortgage, new zealand real estate, First Home Buyer, Second Home, house sales, mortgage ready, property sales, mortgage stress, low equity margin, LEM, loan to value ratio
