What does this mean?

The limitation reduces the level of lending the bank can advance to 10% of the banks new residential lending volume over a six-month rolling average. We are accepting loan applications in excess of 80% LVR and will attempt to accommodate applications on submission, however, there may be times when immediate approval cannot be provided – we’ll do our best to accommodate the request when we can.

Loans of more than 80% LVR will attract an interest margin and applies to variable and fixed rate interest loans. The interest margin will apply while the LVR exceeds 80% LVR.

What does loan-to-value ratio (LVR) mean?

A loan-to-value ratio (LVR) is a measure of how much a bank lends against residential property, compared to the value of that property.

What if I want to switch to TSB Bank?

If you’d like to refinance your residential loan with us from another financial provider and the value of the loan does not increase and the LVR is in excess of 80%, the loan application will be accepted subject to our normal lending criteria.

Does this apply to First Home Buyers?

First Home Buyers under the Welcome Home Loan Scheme or anyone building a new home that they will live in and the LVR is in excess of 80%, are exempt from the RBNZ “Speed Limit”. Normal lending criteria will apply in these instances.