RBNZ intends to lift interest rates over the coming years, but held fire this time given the level of uncertainty about this new outbreak.read more
Alert: Lending policies are changing daily!
Now, more than ever, is the time to be engaging with an experienced and professional mortgage adviser.
Current lending policies
One bank can do 2.99%, another 2.65% fixed for a year. One can lend 80% for investors, the other main banks remain at 70% despite the RBNZ relaxation. Some can pre-approve 90% LVR, some remain at 80% for owner occupied. One main bank can no longer accept boarder income, but the others can.
This is my profession, to stay up with the play on the daily. I have access to 23 banks, being big and small and everything in between. Can you afford to only hear one banks answer? It very well may cost you your financial dream from becoming reality. It will certainly cost you time.
I don’t mind what bank you choose, my job is to give you all the information so you can make an informed decision and choose the solution that is best for you. Be smart, use a Mortgage Adviser who can give you options. Please forward this email to friends or family who you believe will benefit from the service I provide, I would love to help them out.
22 Positives for the New Zealand housing market.
Post lockdown positives for the housing market. Some will relate to Auckland more than others. These come from our favourite New Zealand economist Tony Alexander, and we totally agree with his points.
Housing market post lockdown
- Kiwis returning home
There are one million Kiwis overseas, including near 650,000 in Australia. Many have long-term plans to return to New Zealand and it is likely that many will choose to bring forward those plans in light of virus worries and lockdowns which have made us focus attention on our lifestyles and family. Returning Kiwis will bring their partners and children. While some will go to the regions, most will seek a home and employment in one of our major cities. Partly this is because that is where the greatest opportunities lie. But partly also because they may be coming from a large city, their partner may have spent their entire life in a large city, and migrating to a country town could be too much culture shock.
- Large purchases
In every recession people pull back from purchasing large things like cars, couches, and houses. This may not be a problem for vendors who already own a property. They stay put. But builders with unsold property need sales to meet expenses in an environment where banks always pull back from the property development sector. These builders are now highly motivated to sell – at a discount if necessary. Motivating them to sell quickly will be the imminent removal of LVRs which will encourage buyers back to existing properties as new builds were exempt.
- Loan to value ratios removed
However, banks will still have their own policies around this. Some have come out and said they will loan 80% on a rental property already and 10% deposit for first home buyers will be more accessible. Income must be enough to fit within the banks policy. We can’t stress enough how important this point is. In response banks, needing lending business which will generate profits to help offset losses expected to come from business sector lending, will ease up their loan criteria. Home ownership and property investment will now be within the reach of a lot more people.
- Telecommuting from a distance
The new-found ability and willingness of people to work from home and bosses to tolerate it will lead to more than just reduced demand for central city office space. Some people will realise that they can live further away from the CBD than previously thought given fewer commuting days. So, some shifting to the further environs of Auckland is likely.
A snapshot of your world and lifetime cashflow modelling.
Recently, with the current environment, people are reaching out and telling us they’re worried about a number of things.
Giving you peace of mind
Our clients have said they are:
- Stressed about their financial circumstances.
- Concerned around potential changes in their personal health.
- Uncertain if their existing insurance fits their current needs, or anxious because they’re financially exposed with no cover.
Don’t suppose any of these are an issue for you? Part of looking after you is to make sure your lending commitments can be supported in the event your circumstances change. Jaime and the SuperCity Insurance team have been busy helping clients with financial modelling.
- Clients are often telling us they have more clarity on where they’re at right now because the team can show them a visual snapshot of their world over Zoom. The team model out scenarios that might be a concern for clients, such as ‘what if my income drops?’, and explore ways to help reduce debt and work on building and protecting their lifetime cashflows. Check out their Financial Modelling Demo. If you would like some help, please contact Jaime directly.
Managing Director, Principle Insurance Adviser
M 021 527 069
Level 33, 23 Albert Street, ANZ Tower, Auckland 1010
As a valued client of SuperCity you have access to the following free services
- Advice & recommendationsWe are available to provide expert independent advice and recommendations for your home loan ongoing, all you need to do is email, txt or call either of us.
- Fixed rate home loan reviewsWe’ll help you get the best interest rate in the market for your home loan and contact you well before the bank does.
- Refinance optionsWe’ll help you refinance if you’re not happy with your current bank.
- Home loan top upsWe’ll help you top up your home loan if you need extra funds, for example, to pay for renovations on your home.
- Car loansWe’ll help you get that dream car or to refinance your existing car loan.
- Need help with your life and living insurances?We can connect you with our award winning Insurance Adviser, Jaime James to ensure you’re protected for the things that matter most, your health, family and the most important asset, your income.
- Personal insurancesIncluding home, contents, boats and cars.
- Need help with legal?We can connect you with a Solicitor to assist with the settlement of your home loan, setting up a Trust or for estate planning.
- Regular communicationWe’ll contact you regularly to ensure all is going well with your home loan and to keep you updated with any helpful tips and tricks.
Have a great day and we look forward to helping you achieve your financial goals and plans.
Up-to-date market news.See our archives to catch up on previous issues.
The announcement we did not expect: the removal of the ability of all new investor purchasers to deduct interest costs moving forward.read more
Although November will still likely show a sharp price increase, for December onward monthly price gains below the 3.5% of October and 2.6% of September are likely.read more