The new loan to value ratio, might mean that you need to save up for longer when wanting to purchase a property.
From the 1st of March 2021, LVR restrictions have moved to a maximum of 70%, which means that home buyers will need to have saved up at least 30% of the price for the house they are wanting to purchase.
Due to the COVID hardship, these restrictions have been eliminated from May to November 2020. The new changes made by the Reserve Bank suggest that the country is moving away from financial hardship assistance.
The LVR changes mainly have an impact on investment property buyers, who won’t be able to receive such a large loan when purchasing a house.
At HomeLegal we can help you explain these changes and what they might mean for you if you are wanting to purchase a property in the near future. Our team of experts can help support mortgage applications of first home buyers and help investors.
HomeLegal is a specialist property law firm, helping people in the Wellington region with the purchase and sale of their homes. We ensure that your process is as simple and stress free as possible and will be there to answer any questions you might have about your property journey. HomeLegal has the experience, skills, technology, and approachability to help both first home buyers and investors with their property questions. Contact us now if you need assistance!
For more information visit our website at https://homelegal.co.nz/.