The Reserve Bank of New Zealand have made new construction loans exempt from the recently Lending Value Ratio restrictions put in place in October.
What this means is if you are in the market for building a new home, and do not have 20% you could still go ahead with the project. The above 80% lending restrictions do not apply. Obviously this is subject to the Bank’s normal Lending Criteria but with lesser deposit requirements. Great time to build ???
Also, if you are already an above 80% borrower, you are not locked into your current lender. Should you not be happy with your current finance provider and there is no changes in the parties to the loan and ownership of the property, the transfer/refinance of the loan to another provider, is also exempt from the Lending Value Ratio restrictions.
