Property - Current Lending Restrictions

In 2016 the reserve bank introduced new loan LVR (loan to value ratio) restrictions.

In summary this means that:

For an owner-occupier residential property the LVR is set at 80% -
this means a 20% deposit will be required (with maximum 80% borrowing).

For residential property investors the LVR is set at 60% - meaning a 40% deposit will be required (maximum 60% borrowing and is generally the same for commercial property).

In some cases there may be exemptions for new builds and first home buyers.

While existing lending will generally be okay, if looking to top up a loan the new LVR rules are likely to apply.

Monday, 30th January 2017

"DB Chartered Accountants through David & his team, are fantastic to deal with for our Company accounting needs.

We have found the support and informed advice from David invaluable for our company in our progress and development.

The staff are always welcoming and responsive and the relationship goes that extra mile beyond the Business/Client relationship which we personally appreciate.
Just a great team to do business with."

Managing Director
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