10 Feb 2021

New LVR rules for house buyers/investors from March

From First Up, 5:53 am on 10 February 2021

Investors will need a 40 percent deposit to get a mortgage as a result of new LVR rules announced by the Reserve Bank yesterday. The bank is reimposing Loan To Value ratios from next month at 20 percent for owner-occupiers and 30 percent for property investors. The limit for investors will rise to 40 percent from May. The Reserve Bank's head of financial system policy, Toby Fiennes says the moves are to reduce the financial risks if the housing market falls. Nathan Rarere discussed with Infometrics economist Brad Olsen.