Navigating the new LVRs

For this reason, in the October issue of NZ Property Investor magazine, our journalist finds out what investors need to know to best traverse the new requirements.

The new LVRs took many by surprise when they were first announced back in July.

While further macro-prudential policy was widely expected, it was the speed of the introduction that came as a shock.

Unlike the two earlier rounds of LVRs, limited time was given before the activation date.

Additionally, the Reserve Bank made it clear that it expected banks to start acting “in the spirit of” the new policy immediately.

And, barring pre-approvals, the banks did just that.

This means that, since mid-July, investors have been faced with far more stringent lending requirements.

Now that the LVRs have officially come into force (on October 1) and the rush to push through the pre-approval applications has waned, it seems timely to take a good, hard look at the new LVRs.

To this end, our journalist explains and clarifies the LVR requirements and exemptions in the October issue of NZ Property Investor magazine.

She then explores what the new rules mean for the market and how investors can navigate their way through them.

To read the full story, click here to get the digital issue of NZ Property Investor magazine.

Subscribe to NZ Property Investor magazine here to get great stories like this delivered to your mailbox every month.