LVR is the size of your loan as a percentage of the property's value. How RBNZ restrictions work, and the current limits for investors and owner-occupiers.
⚠️ This entry contains figures or rules that change with government policy or RBNZ settings. Check the current position at the source link below before relying on it.
LVR (loan-to-value ratio) is the size of a mortgage expressed as a percentage of the property's value. The Reserve Bank of New Zealand uses LVR restrictions as a macroprudential tool to limit how much low-deposit lending banks can do.
A $400,000 loan on a $500,000 property is an LVR of 80%. A $175,000 loan on a $500,000 property is an LVR of 35%.
LVR rules are speed limits on banks, not outright prohibitions. As at the settings effective from 1 December 2025:
New builds are exempt from these speed limits.
A speed limit is not an entitlement. The fact that a bank may lend above the threshold does not mean it will lend to you. Banks manage their quota actively and typically prioritise stronger applications. Availability shifts month to month, and a decline at one bank may not mean a decline at another.
LVR is not the only constraint. Since July 2024, DTI restrictions have operated alongside LVR. You must satisfy both.
RBNZ has adjusted these settings repeatedly — in 2013, 2016, 2020, 2021, 2023, 2024 and 2025. Always check the current position at rbnz.govt.nz. From 2026, the Financial Policy Committee reviews LVR and DTI settings at least annually.
Last reviewed: 1 August 2026 · General information only, not financial advice.
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