PHOTO: 123RF Loan-to-value ratio (LVR) restrictions have been removed by the Reserve Bank, effective Friday.
It will now be easier to get a bank loan to buy a house, with the removal of loan-to-value ratio (LVR) restrictions by the Reserve Bank, effective tomorrow.
Restrictions were imposed in October 2013, meaning no more than 10 per cent of banks’ new mortgages by value could be to people with deposits of less than 20 percent.
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With inflating house prices, the requirement for buyers to stump up the 20 percent deposit has been prohibitive.
Reserve Bank deputy governor Geoff Bascand said it received more than 70 submissions on the proposed changes.
“The feedback raised a number of valid points and concerns which were all carefully considered.
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