There can be no doubt that the LVR (Loan to Valuation) ratio rules are having an effect on the property market. With many investors now looking outside Auckland, hence the Auckland halo effect, there are higher property prices being experienced in the regions. However at Mortgage People we are still assisting investors to borrow well in excess of the 60% loan to value ratio that the banks are currently restricted too. We are able to do this as these rules only affect the mainstream banks and non-bank lenders are not affected by these requirements. We are regularly dealing with the non-bank lenders at the highest level and still securing mortgages for our investor clients from as little as a 20% deposit depending on the strength of the deal. What is also not known to many is that the cost of dealing with a non-bank is not that much greater than dealing with one of the main stream banks, as non-bank rates can be within one percent of bank rates and with interest rates at an all-time low the cost is indeed very much acceptable to the majority of investors.
Get in touch with an experienced mortgage broker here at Mortgage People. Our tailored advice and personalised services could help you.