Owner-occupied
Lending is generally available up to 90% LVR, which means a 10% deposit. Above 80% LVR, most lenders add a low equity margin or fee.
The rules
Typical LVR Limits In New Zealand
These are the limits lenders generally work to. Each bank sets its own criteria, and they change over time.
Investment
Lending is generally up to 70% LVR, which means a 30% deposit.
Some lending is exempt from these limits, such as the Kāinga Ora First Home Loan and some construction lending. Each lender also sets its own criteria and may be stricter than the Reserve Bank limits.
Want to know what you could borrow?
LVR is only one part of the picture. Sarah can look at your deposit, income and lender options together and explain what may be possible for you.
What does LVR stand for?
LVR stands for loan-to-value ratio. It compares the size of your loan with the value of the property it is secured against, shown as a percentage.
What does an 80% LVR mean?
An 80% LVR means you are borrowing 80% of the property’s value and contributing the other 20% as a deposit or equity.
Can I borrow above 80% LVR?
It can be possible. Owner-occupied lending is generally available up to 90% LVR, usually with a low equity margin or fee above 80%, and some lending such as the Kāinga Ora First Home Loan is exempt from the LVR rules.
Low-deposit lending is usually harder to get and may come with extra costs, such as a low equity margin or fee. Whether it is available depends on the lender and your situation.
Why is the investor limit lower?
The Reserve Bank sets a lower standard LVR for investment property, so investors generally need a larger deposit. Investment lending is generally limited to 70% LVR, which means a 30% deposit.
Which property value does the lender use?
For a purchase it is usually the lower of the purchase price and the bank’s valuation. For a property you already own, the lender may use a registered valuation or its own assessment rather than an online estimate.
Can I save or share my results?
Yes. Your numbers are kept in the page address as you type. Use “Copy link to these numbers” to share them, or bookmark the page to come back later.
Next step
Talk Through Your Numbers With Sarah
Bring your property value, deposit or current mortgage to a free chat. Sarah will explain how lenders are likely to view your LVR and what your options may be.
This calculator is a guide only and is not a loan offer or personalised financial advice. LVR limits shown are typical lender limits and can change. Lenders apply their own criteria, including income, expenses and property type, and may require a larger deposit.