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

"After 17 years of our own complacency, and believing we were receiving a ‘fair’ service, we were recommended to read DB Chartered Accountants website – we did, and the first meeting date was set…
- David listened to what we were saying
- There was no judgement
- I wasn’t made to feel inexperienced or inept
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- Business accountancy/management options were available – what do we prefer?

We made the positive change to DB Accountants and since; have received professional service complete with suggestions and advice tremendously valuable and supportive to the progress of our business.
Excellent financial reporting mechanisms and assessments present easy identifiers, and the year- end review meeting is a positive look at both historical and future performance, enabling us the opportunity to objectively look at our business options for improvement/sustainability.
Now our accountancy service is supreme!"

Craig & Anita Annett
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