What's happening in the market right NOW
Read Here
News

Loan-to-value ratio restrictions to come into force.

By Alana Saunders

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.

Up to Date

Latest News

  • Summer 2021 Marketing Promotion

    2021 Summer Promotion Terms and Conditions List with the A T Realty Group from now until the 8th of February 2021 and for only $2,500 you will receive our Summer marketing package, valued at over $4,000 which includes: Marketing – Professional photography – Auctioneers fee – 3x 1/2 pages … Read more

    Read Full Post

  • 11 out of 11 for NZ$10M – Ray White A T Realty’s Mega Night

    The teams from Ray White Manukau, Ray White Manurewa, and Ray White Mangere Bridge celebrated a clean sweep last night as the three offices sold all 11 of their properties scheduled to go to auction for a combined value of NZ$10,042,000. The 100 per cent clearance rate included ten properties sold under the hammer … Read more

    Read Full Post