October 22, 2008
So what’s the experience like if you need to re-finance a loan or raise new money in the current economic storm in Australia or New Zealand?
First off: this is not the US: NZ and Australia banks never really got into the crazy lending practices of North America. That said though it had got very easy to get 70% LVR (loan value ratios) without using anything but government valuations (desk-top valuations) in New Zealand. A standard loan of 80% was routine with a reasonable valuation and proof of income. Loans of over 80% were always more difficult and some lenders avoided them. But if you found the right lender you could borrow up to 100% without proof of income so long as you had a track record.
