From the 1st of November, banks will be restricted in the amount they can lend above an LVR of 80% to 10% of all new loans to owner-occupiers.
This has been reduced from the previous 20% in order to try to bring house prices down and create a stable housing market while reducing risks to economic and financial stability. Restricting high-risk lending will reduce the likelihood of these issues occurring and support both the New Zealand economy and the housing market.
This change means that it could be even more difficult for first home buyers to be able to purchase their first home, as a higher percentage of deposits will be needed when applying for a loan. Having a conveyancing lawyer to support your first home buyer journey will become even more essential, and Collins & May Law is happy to help everyone in the Wellington region looking to purchase their first home.
Our team can explain what these new LVR regulations mean to you and how much you will need to deposit in order to get a loan from the bank. Get in touch with Collins & May Law today to learn more about the LVR changes and what they mean for your property purchase!