What options do I have if I want to buy residential investment property and I have less than a 40% deposit?

Last Updated: 02 Aug 2016

Following a proposal by the Reserve Bank of New Zealand’s (RBNZ’s) on Loan to Value Ratio (LVR) restrictions in July 2016 loans for residential investment properties generally require 40% equity; however a lower equity level may be possible. Talk to us for full details. 

If you have less than a 40% deposit and want to buy residential investment property, there are a few things you can do:

  • Have a greater deposit to reduce the LVR to less than 60% 
  • Combining any other properties (such as residential non-investment property) you hold as part of the loan application which may have the effect of lowering the LVR, including obtaining an updated valuation on one or more of the properties
  • Subject to certain conditions being met, an exemption from the RBNZ restrictions may apply, such as construction lending or if you are refinancing from another bank

Our Lending Specialists can talk to you about these options. Simply call 0800 100 600 or visit your nearest ASB branch.


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