Wellington Propertyscouts

LVR Restrictions being adjusted - 30th Nov 2017

LVR Restrictions being adjusted The Reserve Bank announced on Wednesday that they will be adjusting the Loan to Value Ratios (LVR) for owner-occupier buyers and investors from 1 January. For investors, the deposit required will now be 35% of the purchase price, instead of the current 40%. This is not a significant reduction and will not exactly see investors rushing back into the market which is exactly the intention of the Reserve Bank. Moreover, the adjustment for owner occupiers is not with the LVR itself but an adjustment of the ‘speed limit’ or how much a bank can bend the rules. This is the amount of new mortgage lending banks can do that exceeds the current 80% of the value of the home. Currently the rules can be bent on 10% of all lending but this will be increased to 15% of lending. Are you still with us? Let’s just stop there because all you really need to know is how it affects investor’s right?

Read a full article on the LVR adjustments here - 

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