RETIREMENT CALC

attach_money

RBNZ targets residential property investors with new high LVR restrictions

The Reserve Bank (RBNZ) is cracking down on bank lending to residential property investors, announcing it’ll reinstate tougher loan-to-value ratio (LVR) restrictions than were in place last year.

 

From May 1, at least 95% of new bank lending to residential property investors has to go to borrowers with deposits of at least 40%.

As an interim measure, from March 1 to April 30, the deposit requirement for at least 95% of new investor lending is being set at 30%.

From 1 March 2021:
LVR restrictions for owner-occupiers will be reinstated to a maximum of 20% of new lending at LVRs above 80%.
LVR restrictions for investors will be reinstated to a maximum of 5% of new lending at LVRs above 70%.

From 1 May 2021:
LVR restrictions for owner-occupiers will remain at a maximum of 20% of new lending at LVRs above 80%.
LVR restrictions for investors will be further raised to a maximum of 5% of new lending at LVRs above 60%.

Exemptions:
A new build exemption where the borrower commits to the purchase at an early stage of construction or buys the residence (within six months of completion) from the developer;
Kāinga Ora’s First Home Loans scheme (formerly Welcome Home Loans), for low deposit borrowers to buy their first home; and,
Loans for remediation required to bring a residence up to new building codes, or to comply with new rental property standards (for example, installing insulation).

view source article >

Property Investors Club turns everyday kiwis into successful property investors and manages the entire process for them.

Next Property Investment Seminar

Resources

Keen to get started? Learn more at our next property investment event.

Register for our next property investment talk in Christchurch

Contact Us

 

+0800 943 534

 

Property Investors Club
Stranges Lane, Cnr Lichfield & High Street

email@propertyclub.co.nz