A Low Equity Premium is an additional fee that lenders charge when your LVR is above a certain threshold, often 80%. This is to cover the increased risk the bank takes on by lending a higher proportion of the property's value. The LEP can either be a one-off payment or an ongoing fee added to your mortgage repayments.
Low Equity Premium (LEP) Articles
Navigating LVR Limits for First Home Buyers
Stepping into the property market for the first time can be both exhilarating and daunting. One term you're likely to encounter early in your property journey is the Loan-to-Value Ratio (LVR). While it might seem complicated at first glance, understanding LVRs can significantly ease your passage into home ownership. Read on to be guided through the intricacies of navigating LVR limits in the NZ property market.