LVRs on home to rental
Question from Ram updated on 9th March 2018:
I have a property that I purchased in September 2014. it was a first home, purchased with a 10% deposit. Currently, my loan amount is 80% of the total value of the house (current market value).
I am moving due to a job change. So I want to rent my property out and go and live in a different property paying rent myself. Can I have this property as an investment even if i don't have 40% as required by the LVR rules?
Our expert Kris Pedersen responded:
That is completely fine. Lenders would have an issue if you had originally stated it as a personal residence, not used it as such and rented it out. However, in this case it is legitimate and so completely fine.
Kris Pedersen of Kris Pedersen Mortgages is a commentator on property and finance. His team sources top finance strategies. www.krispedersen.co.nz