NZ LVR Speed Limits Calculator
Check whether your NZ home loan meets the RBNZ LVR speed limit restrictions. Owner-occupiers face an 80% LVR cap, investors a 65% cap, with new builds exempt. Includes Kainga Ora First Home Loan eligibility, bank pool strategy, and investor portfolio LVR planning. All figures in NZD.
RBNZ applies different LVR caps by borrower type. Investors face the strictest restriction at 65% LVR maximum (35% deposit). Owner-occupiers and first home buyers share the 80% LVR cap (20% deposit). The speed limit is the proportion of new bank lending that can exceed these caps.
| Borrower Type | Max LVR | Min Deposit | Speed Limit | Min Deposit on NZ$750,000 | Monthly (6.99%) |
|---|---|---|---|---|---|
| Owner-Occupier | 80% | 20% | 15% of new lending | NZ$150,000 | NZ$3,988/mo |
| First Home Buyer | 80% | 20% | 15% of new lending | NZ$150,000 | NZ$3,988/mo |
| Investor | 65% | 35% | 5% of new lending | NZ$262,500 | NZ$3,240/mo |
RBNZ has used LVR speed limits as a macroprudential tool since 2013. The policy has been tightened and loosened in response to housing market conditions and financial stability risks.
| Period | Owner-Occupier Cap | Investor Cap | Context |
|---|---|---|---|
| Oct 2013 | 80% (10% pool) | 80% (10% pool) | LVR restrictions introduced — first time in NZ |
| Nov 2015 | 80% (15% pool) | 70% (5% pool) | Investor restrictions tightened amid rapid price growth |
| Mar 2016 | 80% (15% pool) | 60% (5% pool) | Investor deposit minimum raised to 40% |
| Jan 2017 | 80% (20% pool) | 65% (5% pool) | Investor cap eased slightly; owner-occupier pool widened |
| Apr 2020 | Removed | Removed | COVID-19 response — LVR restrictions lifted |
| Mar 2021 | 80% (20% pool) | 70% (5% pool) | Restrictions reinstated — housing market boom |
| May 2021 | 80% (20% pool) | 60% (5% pool) | Investor cap tightened back to 40% deposit |
| Jun 2023 | 80% (15% pool) | 65% (5% pool) | Slight easing as market cooled |
| Mid-2024 (current) | 80% (15% pool) | 65% (5% pool) | Current settings — ongoing monitoring |
How to Use This LVR Speed Limits Calculator
Select your borrower type (owner-occupier, first home buyer, or investor), enter the property price and your available deposit, and indicate whether the property is a new build or existing. The calculator checks whether your LVR meets the RBNZ speed limit restrictions and shows any exemption pathways available to you. Figures in NZD.
What Are RBNZ LVR Speed Limits?
The Reserve Bank of New Zealand (RBNZ) uses Loan-to-Value Ratio (LVR) restrictions as a macroprudential tool to manage financial stability risks in the housing market. The restrictions set a maximum LVR for residential lending — and, critically, they also set a "speed limit" on how much of a bank's new residential lending can exceed this cap. Banks cannot lend above the LVR limit to everyone who qualifies financially — they must stay within their speed limit allocation.
Current LVR Restrictions (2024)
Owner-occupiers and first home buyers: maximum LVR of 80% (minimum 20% deposit). Banks can lend up to 15% of new residential lending above this limit. Investors: maximum LVR of 65% (minimum 35% deposit). Banks can lend only 5% of new residential lending above this limit. New builds are exempt from LVR speed limits for all borrower types.
LVR and Speed Limit Formula
Standard LVR Cap — Owner-Occupier: 80% (min 20% deposit)
Standard LVR Cap — Investor: 65% (min 35% deposit)
Speed Limit — Owner-Occupier: 15% of new lending above 80% LVR
Speed Limit — Investor: 5% of new lending above 65% LVR
New Build Exemption: exempt from speed limits (any LVR up to ~90%)
Example: First Home Buyer vs Investor on Same Property
$750,000 Property in Wellington — FHB vs Investor
| Property value | $750,000 |
| FHB — minimum deposit (20%) | $150,000 |
| FHB — LVR | 80% (meets standard cap) |
| Investor — minimum deposit (35%) | $262,500 |
| Investor — LVR | 65% (meets investor cap) |
| FHB with Kainga Ora (5% deposit) | $37,500 (income cap applies) |
| Kainga Ora LVR | 95% (exempt — special scheme) |
The investor must find $112,500 more deposit than the first home buyer for the same property — and has access to only 5% of bank speed limit pool (vs 15% for owner-occupiers). This structural difference is a key reason why investors face much more difficulty entering the market at lower deposit levels, and why new builds often present a better opportunity for investors (new build exemption applies).