Banks current LVR

[markw1]

We were a little surprised our bank Kiwibank would only allow us to go to 60% LVR. Would appreciate what other people LVR'S are and with which bank?

[sarahd]

what type of property?

[princess]

I'm with BNZ, up at 81% for a very short time.. needed RV to get that funding for project completion.

[orion]

We were a little surprised our bank Kiwibank would only allow us to go to 60% LVR. Would appreciate what other people LVR'S are and with which bank?

Kiwibank will still do 95% lending to approved borrowers so long as NSR is within limits. They will actually go to 100% still under some circumstances i.e. the other 5% is borrowed or gifted from family etc.
I have quite a lot of borrowing with Kiwibank and only go to 80% with each property, over that and you pay LMI.

Regards
Graeme Fowler

[tpr2]

LVR's will vary based on the property type, i.e land, apartment, house etc and the character of the applicant. i.e fully verified loan, lo-doc, credit impaired.

So if your looking for a lo-doc apartment purchase expect 40% LVR lol.

NZF will do 70% on certain properties as an equity lend with rates starting at 11%....ouch.

[roseneath_rat]

One major bank has just shifted its LVR policy this week as follows:

Owner-occupied home max 90% (preference to sub-80%)
Own home & 1 rental max 85% LVR
Own home & 2+ rentals max 75% LVR

With fixed rates under 6% it is creating a shift away from a cashflow focus to an equity focus in credit.

[revdev]

Own home & 2+ rentals max 75% LVR

Just to clarify RR, 2+ rentals with that particular bank, or in total?

Cheers,
G

[roseneath_rat]

While banks are definitely concerned with total gearing levels they will be more interested in what the direct exposure they have relative to assets that they directly control.

To answer your specific question in this particular situation I believe it is LVR with that particular bank.

[markw1]

Have recently been gifted a freehold (inherited) $1,200,000 property (house and sections) so will use this with another bank so we have 2 lenders. Our current lender dosnt even know we have been gifted this and would like to keep it that way.

Current LVR is around 55%. Pretty sure our current lender isnt happy to increase furthur.

[Monkeyboy]

While LVR is an important thing for the banks the main concern is serviceability. If you don't have the income then they don't want to give out their money.

[tpr2]

Yep Mike is right, LVR helps at the moment but cripes the banks are tight on servicing now.
Also lets hope you don't belong to one of the industries they don't like at the moment

[freezinhot]

Yep Mike is right, LVR helps at the moment but cripes the banks are tight on servicing now.
Also lets hope you don't belong to one of the industries they don't like at the moment

Which is?

FH

[roseneath_rat]

Construction
Development
Retail
Hospo
Housing reliant (eg- RE agents)