Buying a Second Home.

 

Step up to your second home or investment property with confidence.

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Whether you are upgrading to your next home, buying a second property, or building a property portfolio as a founder or business owner, Finance Corp. helps you access competitive home loan and investment property lending across New Zealand.

 

Use the equity in your current home

If you already own a home, you may be able to use your equity to help fund your next purchase. In New Zealand, many lenders use 80 percent loan to value ratio (LVR) for owner occupied homes, a common benchmark for equity releases and top ups. Lending above 80 percent can be possible in some cases, but it is more limited and can come with additional costs or pricing.

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As of February 2026, the Reserve Bank’s LVR rules allow banks to allocate up to 25 percent of new owner occupier lending to loans above 80 percent LVR.

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Some lenders also set maximum LVRs in their own policies, which can vary by property and how the lending is secured.

 

Buying an investment property

For residential investment property lending, many lenders expect a larger deposit than for an owner-occupied home.

In practice, many investment property loans are still structured around an LVR of 70 percent or lower, meaning a 30 percent deposit, depending on the lender, property, and your overall financial position.

 

Borrowing power also depends on debt-to-income rules

Since 1 July 2024, banks have also had to work within debt to income (DTI) restrictions. As at the Reserve Bank update in late 2025, banks can lend up to:

• 20 percent of new owner occupier lending to borrowers with a DTI over 6

• 20 percent of new investor lending to borrowers with a DTI over 7

This can affect how much you can borrow, even if you have strong equity.
 

How Finance Corp. helps

We help you maximise borrowing capacity by building a clear strategy around:

• Equity release and loan top ups

• Pre-approval for your next home or investment purchase

• Refinancing and restructuring existing lending

• Smart loan structuring to suit cash flow and long-term goals

• Comparing options across banks and non-bank lenders, where appropriate (DTI rules apply to banks only)

 

Talk to Finance Corp. about the best path to your second home or investment property. Call 022 125 9110 or click here for more information on Home Loans.

 

This article is accurate as of 23 February 2026. Please note that financial advice changes regularly, so this information in this article, should be used as a guide only. Please call us for up-to-date information.

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