LVR's and Banks Low Equity Margins Hurting First Home Buyers
A new article from Stuff talks about the issues that LVR's could be causing for first home buyers. Read the article here
I agree with REINZ's warning. However along with the LVR's impacting first home buyers, banks also use LEM (low equity margins) which can add a premium to interest rates for lower deposit purchases. For example you could be looking around 4.70% interest rate with 20% deposit versus 6.00+% with 10% deposit which is a huge swing in repayments for a 1st home buyer when they need support the most. Removing these would also go a long way to making home ownership a reality for many.