Will the loan to value ratio (LVR) restrictions affect you?

With the reserve bank looking likely to introduce LVR restrictions to
80% of the property value, this would mean that purchasers would need
to have a deposit of 20% to purchase a property or does it?

It would be fair to say that most new home buyers would struggle to
have up to $100,000 or more sitting in their accounts to purchase
their first home, but there maybe other solutions available to help
you get around the 80% threshold.

The proposed restriction is only limited to the registered banks,
therefore we would expect the second, mortgage market to open up to
help assist with borrowing above the magical 80%.

This is where it becomes vitally important to seek good advice from a
registered financial adviser. They will have the skill and expertise
to help clients that fall into this situation.

Rohit Ranchhod
Financial Adviser
smartbrokers.co.nz

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