Are banks treating high LVR customers any differently?
LVR rules were scrapped in April following the Covid-crisis to boost credit availability during the recession, yet the Reserve Bank's move appears to have had a marginal impact on the lending market, according to anecdotal evidence from advisers.
Kris Pedersen, of Kris Pedersen Mortgages in Auckland, said: "I wouldn't say [there's been] a huge difference in appetite." He said there was "a bit more in the 80%-90% space".
"They’ve tightened in the above 90% [LVR] to only doing the First Home Loan product, whereas pre-lockdown, there was some funding outside of this up to 95%."
Pedersen said low equity premiums were still in place across the board.
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