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

"We have complete faith in David and the team at DB Chartered Accountants.

There is never a time when we have not been able to contact them with a query, whether accountancy, business or more personal matters.

They are perfectionists in everything they do and never make you feel inadequate. I am sure it must be company policy to ensure we, the clients, completely understand.

This is an awesome team and I have complete confidence in them, and no hesitation in recommending them."

Jennie Gallagher
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