How much LVR will the the banks do on propertys outside the main cities in NZ. I’m thinking of small cities and large country towns (25000-5000)
I’ve been checking out a few potential deals on realenz.com. I am planning to be over there in a couple of weeks to surf the streets and check a couple of places out.
Pursefattener
Will depend on the lender, your lending strength, and similar.
Generally, some banks have a list of areas where they have tighter lending criteria such as a 30% deposit and restrictions on the loan for the first couple of years (ANZ is an example of this).
A good broker should be able to help you through the maze of NZ lending
Cheers
CDCastleDreamer
Sounds as though it is likely that banks will only do say 60-70LVR on modest propertys in smaller towns as a rule??
Applying similar criteria to Au based lenders??
Pursefattener
Some banks apply that thinking, eg ANZ will require a 30% deposit in Tokoroa, and some areas of Wanganui – yet when you go there, they look nothing like the skanky areas I have come accross in Australia, but it is different in NZ, and the banks are obviously risk averse – especially with O/S investors.
Does anyone out there have the list of towns where ANZ require a 30% deposit – I can’t seem to find my email
Cheers
CDCastleDreamer
I’ll second that.It would be great to know what the criteria are in different towns. South Island included.
Yes, it’s a little frustrating researching propertys and getting your hopes up only to find you are unable to borrow what you thought you could.
Perhaps some of the mortgage brokers here might be able to guide us on what towns are difficult to get competitive finance for. Talking to my CBA banker here in Victoria, the best answer he can give ,(for oz propertys) is that it is simply a case by case assessment.
I’m beginning to realise the value of a good mortgage broker.
Happy hunting
PursefattenerHere is a link to the PMI location wizard for NZ and Australia,
You can search via Suburb/Town or Post code,http://www.pmigroup.com.au/LocationWizard.asp
The Location Wizard is a guide to determine whether a location is eligible for Lenders Mortgage Insurance,
Regards
Steven
Mortgage Broker[email protected]
http://www.mobilemortgagemarket.com.au
Ph:1800 820 500
VictoriaPLEASE note comments made should NOT be taken as specific taxation, financial, legal or investment advice. Please seek professional, specific advice.
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