If you are buying a house to live in, the general rule is, banks require a 20% deposit. However, there are exceptions including a limited amount of funds available for lending to strong applicants with a lesser deposit. If you are buying a new-build home you are exempt from reserve bank LVR restrictions; the applicant’s outcome will come down to the individual bank’s policies most of which allow lower LVR’s, in some cases as low as 5%.
The Reserve Bank announced that from 1st March 2021, the LVR restrictions for investment properties would move to a maximum of 70%. Then, from 1st May, LVR restrictions for investment properties would move to a maximum of 60%.
Non-bank lenders are likely to see an increase in investment lending as they continue to offer lower LVR’s, in many cases requiring just a 20% deposit.