LVR restrictions New Zealand are measures of how much a bank is allowed to lend against residential property over the value of the property. New Zealand's loan to value ratio restrictions were put in place to limit the amount of high LVR lending and not to eliminate this type of lending entirely. While it is a reasonable measure to prevent banks from sticking out their necks for borrowers who may not be able to pay off loans on time which could result to significant dips in real estate property values, the restrictions may be hurting first time home buyers and investors.