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. These restrictions, set by the Reserve Bank of New Zealand, limit how much banks can lend to manage risk in the housing market.
Current rules generally require:
- Owner-occupiers: 20% deposit (80% LVR)
- Investors: 30% deposit (70% LVR)
Exemptions are available, with no LVR restrictions on new builds. Banks also have allowances for high-LVR lending, and schemes like the First Home Loan can help buyers with smaller deposits.
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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