Investment Property Loans & Financing Auckland

Potentially.

Equity is the difference between your property's value and the amount you owe against it, but not all of that equity will necessarily be available to borrow against.

Investors are also subject to different LVR requirements from owner-occupiers. As at October 2026, Reserve Bank settings allow up to 10% of new investor lending by banks to be above 70% LVR.

The bank will also assess affordability and DTI requirements.

LVR stands for Loan-to-Value Ratio.

It compares the amount you are borrowing with the value of the property.

For example, if you purchase a property for $800,000 and borrow $640,000:

$640,000 ÷ $800,000 = 80% LVR

That means you have contributed a 20% deposit.

LVR rules influence how much low-deposit lending banks can undertake, although each lender still makes its own credit decision.

DTI means Debt-to-Income Ratio.

It compares your total debt with your gross annual income.

For example, if your household earns $150,000 before tax and your total debt after purchasing is $750,000, your DTI is:

$750,000 ÷ $150,000 = 5

Reserve Bank DTI restrictions have applied to residential mortgage lending since July 2024. They operate alongside LVR requirements and limit the proportion of high-DTI lending banks can undertake.

Importantly, DTI is only one part of a bank's assessment. You must still demonstrate that you can afford the repayments under the lender's servicing criteria.

Bridging finance can help when you purchase your next property before your existing home has sold.

For a period, you may have lending secured against both properties.

Banks generally want to understand:

• The value of both properties
• The amount you owe
• Your available equity
• Whether your existing home has sold
• Your ability to service the debt
• Your plan if the existing property takes longer than expected to sell

Bridging finance can be useful, but it needs to be structured carefully because you may temporarily carry substantially more debt.

Every bank has its own lending criteria.

There can be differences in how lenders treat:

• Bonuses and overtime
• Commission income
• Self-employed income
• Rental income
• Boarder or flatmate income
• Credit cards
• Existing mortgages
• Childcare costs
• Business income
• Investment properties
• Proposed retirement age
• Different types of property

This means one bank declining an application does not necessarily mean every bank will reach the same conclusion.

Part of our role is understanding your circumstances and identifying which lenders may be the best fit.