Over recent years banks have increasingly employed the practice of adding Low Equity Margins (LEM) to home loan interest rates when they are lending for housing purchases with less than a 20% deposit.
A 3 minute read…Summary covers - Mortgage Borrowing Strategy, Inflation Watch, NZ Property Gauge and Economic Overview.
CHIEF ECONOMIST CORNER: INFLATION WATCH
In recent months movement among mortgage rates has been minimal, and the mortgage curve continues to echo a tick shape, with the sharp low point punctuating the 1-year rate mark. This makes it very clear that the 1-year terms are quite preferable.
These days if you’re buying a home in your twenties chances are you’ll be smugly feeling like you’re winning in life (even if you’ve had to cut back on morning latte and smashed avo brunches). But beware, there are a few mistakes young home buyers need to watch out for.
The government has set up an investment company to encourage building of user-pays trunk infrastructure in Auckland in an effort to speed up certain road and water pipe construction for new housing developments.
The Reserve Bank has long been concerned about the growth in high Debt to income (DTI) mortgage lending that New Zealand has seen in recent years and the financial risks that it poses.
Fixed Interest Rate Strategy – maintain a balance of risk by keeping a portion of your lending on shorter 1 -2 year fixed rates to take advantage of shorter term lower rates however look to lock a larger portion of your lending for at least 3 years to secure longer term certainty
Contrary to popular belief, bank fees aren’t always something you have simply suck up and deal with. Here are some helpful reminders designed to help minimise bank fees and bolster your bank balance.
For many of us owning a holiday home may seem key to embracing the Kiwi dream, but is purchasing a holiday home really a financially savvy move? If you’re eyeing up a holiday retreat there are a few things you need to consider up front.
First and foremost, can you actually afford it?
We’re in peak property sale season, so chances are there are a fair few of you who end up dealing with the stress and complexity of buying a new property.
Nobody wants to be stressed about money, especially at this time of year! Pay heed to this advice and you should be able to steer clear of financial stress over the festive season – and set 2017 up to be your best year yet.
Although there has been little change to floating mortgage rates, rates with terms of 2 years and longer continue to move gradually higher. This has occurred largely as a result of higher global interest rates (which tend to have a larger influence on New Zealand longer-term rates than local factors do), and rising funding costs.
According to the latest monthly QV House Price Index it seems that the annual rate of home value growth has slowed as the LVR has taken effect. The Loan to Value ratio (LVR) is the amount of your loan compared to the value of your property.
If you are planning to buy a house or refinance your home loan in 2016, you’ll want to check your credit rating and look for ways to improve it.
Are you a first home buyer or looking for a change in the house you have? You will have plenty of company, with low interest rates and high immigration keeping home buyer demand high in New Zealand in 2016