Quick Answer: Investors currently need at least 35% deposit for an existing investment property under Reserve Bank LVR rules, but new build properties are typically exempt from these restrictions, allowing investors to buy with as little as 20% deposit in many cases.
How LVR Rules Work for Investors
The Reserve Bank of New Zealand sets Loan-to-Value Ratio (LVR) restrictions as a macro-prudential tool to manage risk in the lending market. For investors, this currently means loans above 65% of a property's value (i.e. deposits below 35%) are classed as high-LVR and tightly rationed across the banking system.
From December 2025, banks were given more room to lend at higher LVRs - the “speed limit” on high-LVR investor lending doubled from 5% to 10% of new commitments - giving a slightly wider pool of investors access to lower-deposit lending than in previous years, though 35% remains the standard expectation for most existing-property purchases.
The New Build Exemption
One of the most useful levers for investors with a smaller deposit is the new build exemption. Because the government wants to encourage new housing supply, new build properties are generally exempt from LVR restrictions for both owner-occupiers and investors - meaning you may be able to buy a brand-new investment property with just 20% deposit instead of the usual 35% required for an existing home.
- Applies to genuinely new dwellings, not renovated existing homes
- Can significantly lower your entry deposit as an investor
- Worth discussing directly with your bank or mortgage adviser, as exact eligibility can vary by lender
Common Questions, Answered
Quick Summary
- 35% deposit is standard for an existing investment property under current LVR rules.
- New builds can need just 20%, thanks to the LVR exemption designed to boost housing supply.
- Banks have some flexibility within Reserve Bank limits, so shop around before assuming the worst-case deposit.