The Reserve Bank of New Zealand’s loan-to-value ratio (LVR) restrictions mean borrowers will soon need a 30 per cent deposit for mortgages for many Auckland properties
Borrowers will soon need a 30 per cent deposit for a mortgage secured against Auckland rental property.
Plans announced by the Reserve Bank of New Zealand around loan-to-value ratio (LVR) restrictions, announced earlier this year, are set to come into force on 1 November.
The changes, originally scheduled to come into effect on 1 October, were delayed to allow banks to adapt their systems to cater to the new lending rules.
For owner-occupier loans in Auckland, banks can make up to 10 per cent of their new mortgage lending to borrowers with an LVR over 80 per cent.
Outside Auckland, restrictions are being eased to 15 per cent for LVRs exceeding 80 per cent for both owner-occupiers and residential property investors.
Meanwhile, interest rates are set to drop even lower following the Reserve Bank of New Zealand’s decision to lower the official cash rate to 2.75 per cent earlier this month.
Balancing the property market remains a focus for the Bank with a heated Auckland market still a concern, particularly with investors.
Auckland house prices are becoming more and more unsustainable, and while residential construction in the region is increasing, it will take some time to correct the imbalances in the market, a statement from the Reserve Bank said.
If you’ve been wondering whether now is the right time to sell your property in South Auckland, the latest market data suggests confidence is continuing to build. The New Zealand property market has entered a more balanced phase, with improving buyer activity, greater certainty around interest rates and increased competition for quality homes. While buyers … […]
Nearly 600 Bids Placed as Buyers Compete at Game Day Buyers remained highly active at Ray White A T Realty’s latest Game Day auction event, with 598 bids placed across eight hours of auctions and active bidding recorded on 97 per cent of properties called. The event generated $17,849,500 in property sales, with 23 properties … […]