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What are the best terms out there in in regards to LVR. I currently have 30% equity and would be interested to use some of this equity to fund a new purchase before the end of the year.
Westpac will do up to 90% on 2 properties provided one of the properties is owner occupied.NZF will also go to 90% over 2 properties with just about the same guidelines.ASB is extremely conservative currently and is not an option to consider. ANZ & National Bank will consider individual cases for lending over 80% on a rental property. BNZ - will also go the way that Westpac & NZF go. Remember that BNZ still do not do business with mortgage brokers but you may be advised to approach a broker who may broker a loan for you for an agreed fee.Should you need assistance,please e-mail [email protected]
There are two things (if not more) to consider with what you are suggesting. Banks typcailly will only go to 80% LVR some might go higher, and has been mentioned ASB is firmly shutting the gate on the horse called risk that bolted some back - that's another story.
You've got to consider how much you can afford to service on the loan as well.
To me, the conservative approach would be to keep LVRs relatively low presently, i.e. well under 80%. My experience recently has shown that even LVR's in the 70's can scare some off, but it seems to depend on what and who you know as opposed to hard and fast rules. Or, if there are hard and fast rules there are ways around them.
The benefit of this approach is two fold one, if the doom sayers are even remoted right then any drop in values is not really going to affect you. Secondly, if the doom sayers are wrong and prices start rising you are in some some value benefit and the opportunity to buy more using equity.
Thanks Steven...my response was posted only as a guideline on different lenders policies.The final call on whether to lend lies with the lender....and whether to take the plunge once the lender has said YES is with the prospective borrower.
I have found recently a "business case" goes a long way in explaining what you want. Banks are hugely risk adverse presently and despite the fact new borrowers are probably far less risk than ones that bought three years ago.
I go to them with everything they could possibly even think of. No doubt just to piss you off they will ask for something else, like for example, the DNA of your great grandfather. The last loan I applied for I provided something like 50 pages of documents. No questions approved in less than a day.
Good on you Steven. It's not just the banks that are asking for a paper trail..the few non-bank lenders who are in the market ask for as much paperwork,if not more.Even if the LVR is hovering between 65-70% the paperwork does not reduce.
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