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Saving a first-home deposit has become one of the biggest hurdles for buyers entering the property market.
While many people can comfortably service a mortgage, pulling together a sufficient deposit often takes years. That's why family support is
playing an increasingly important role in helping first-home buyers get across the line.
Live webinar. We're joined by two of Kiwibank's economists — Chief Economist Jarrod Kerr and Alexandra Turcu — for an honest hour
on where the New Zealand economy is actually heading.
Register now.
One of the biggest points of confusion for homebuyers - especially first home buyers - is the word “deposit.” One thing that catches a lot of buyers out is that there are actually two different types of deposits involved when purchasing a property.
If you're building a property portfolio in New Zealand, Loan-to-Value Ratio (LVR) restrictions are something you'll come up against at every
step. Set by the RBNZ, they cap how much banks can lend relative to a property's value — and they hit investors harder than owner-occupiers.
Below, we walk through the rules, the key exemptions, and a worked example.
1. What Is an LVR?
2. How LVR Is Calculated Across a Portfolio
3. Key Exemptions to LVR Restrictions
4. Case Study: Adding a Third Property
5. Scenario Comparison: 70% vs 80% LVR
6. Key Takeaways for Portfolio Investors