By Rohit Ranchhod | Smart Brokers | Mortgage Broker
With the reserve bank looking likely to introduce LVR restrictions to
80% of the property value, this would mean that purchasers would need
to have a deposit of 20% to purchase a property or does it?
It would be fair to say that most new home buyers would struggle to
have up to $100,000 or more sitting in their accounts to purchase
their first home, but there maybe other solutions available to help
you get around the 80% threshold.
The proposed restriction is only limited to the registered banks,
therefore we would expect the second, mortgage market to open up to
help assist with borrowing above the magical 80%.
This is where it becomes vitally important to seek good advice from a
registered financial adviser. They will have the skill and expertise
to help clients that fall into this situation.
PS – do not miss this article here about how we get people to pay off their mortgage WAY faster…. https://www.smartbrokers.co.nz/how-to-pay-off-your-mortgage-faster-2/