LVR increase by banks generates an opportunity for investors

Several New Zealand banks have announced an increase in the loan-to-value ratio (LVR) for investment property lending taking it from 65% to 70%. This change creates an opportunity for investors to have their mortgage lending reviewed.

Erskine Owen Mortgage Broker, Wendy Ryan-Kidd says this is a positive move for investors allowing them access to further lending from banks. “This move by the banks allows a potential uplift for investors with the possibility of being able to borrow an additional 5% from banks. The change will encourage some to seek new lending, and others with current debt can take the opportunity to refinance or restructure their mortgage.”

The ability for investors to secure more lending can also have a flow-on effect, increasing demand for investment properties and create an uplift in house prices.

“Now is a prime opportunity for investors to review their lending to ensure they have the best mortgage terms in place. Setting their lending up now could mean the difference between securing a great opportunity in the future or missing out. It is important to make sure your money works as hard as possible for you and speaking to your mortgage broker now is a smart call,” says Ryan-Kidd.

If you would like to discuss your investment property mortgage, get in touch with Wendy today.

Wendy Ryan Kidd joined Erskine and Owen in 2009. She is Erskine Owen’s in-house mortgage broker and business development director.

She has been working as a mortgage advisor in the real estate industry for over 10 years and she specialises in taking the hard work and pain out of securing a mortgage, finding solutions customised to each client’s specific needs.

Having worked in the insurance industry early in her career, Wendy has gained extensive knowledge in property, including being involved in property viewing, due diligence, property management and project management. Wendy also has invaluable personal experience as a property investor herself.

Contact Wendy

Email: wendy@erskineowen.co.nz