There is a way you can get a loan for an investment with only 20% deposit.


If you’re thinking about investing, the deposit amount you need to have may be causing your anxiety levels to rise. But don’t worry, there is light at the end of the tunnel.

Since 2016, restrictions have been in place for investors which means a hefty deposit is needed to make an investment purchase. This was initially 40%, but has eased to 35% since the start of this year with banks being capped at lending 5% to investors with this size deposit. The higher deposit requirements put in place by Reserve Bank of New Zealand (RBNZ) initially helped cool off some housing markets such as Auckland, but critics are saying the job has been done and it’s time for these restrictions to ease.

The good news is that as a Loan Market adviser, I have exclusive access to two non-bank lenders who are able to lend to investors with a deposit of only 20% or equity equivalent in a property. At Loan Market, we have seen an increase in applications in this space with people leveraging the equity in their home to get into property investment with a little as 20% deposit or equity when they originally thought this had to be much higher.

I can work with you to see if you meet the requirements for these lenders and assist you throughout the loan process explaining each step along the way and working with you to achieve your property goals.

If you would like any further information on how I can help, please don’t hesitate to contact me.