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Breaking Barriers: Your Path to Homeownership with a 5% Deposit

Owning your first home is a monumental achievement, but the journey often involves overcoming the challenge of securing a substantial deposit. Traditionally, lenders demanded a minimum deposit of 20%, creating a significant obstacle for aspiring homeowners. The good news for first home buyers in New Zealand is the groundbreaking First Home Loan initiative....

Co-ownership: Buying a First Home with Family or Friends

In New Zealand's competitive housing market, pooling resources with family or friends could make home ownership a reality for some first home buyers. To ensure a smooth and successful home buying journey though, it's important to make well-informed decisions and establish clear guidelines. Get valuable tips for co-ownership in New Zealand: from choosing the right person to buy with, drafting a property sharing agreement, to deciding how the loan will be repaid and determining an exit strategy....

Potential Opportunities for Property Investors

A change in government could see more opportunities open up for property investors in New Zealand, with adjustments to the Brightline Test, removal of the foreign buyer ban, and a reinstatement of interest deductibility just some of the policies being considered. Find out how these possible changes could reshape the property market landscape and what the overall impact would be for property investors....

A Housing Market Upturn is Good News for Sellers

New Zealand’s property market may be shifting from a buyer’s market to a seller’s market, driven by greater buyer demand – in particular from first home buyers taking advantage of favourable house price conditions – and lower-than-usual listings in what is traditionally the busy Spring selling season. Read on to find out more about the two important changes to market conditions that could see sellers regain the upper hand....

Managing High Interest Rates and Mortgage Repayments

With the Reserve Bank of New Zealand holding the Official Cash Rate (OCR) at 5.5 per cent in October 2023, borrowers are having to get used to higher interest rates and mortgage repayments, as a drop in interest rates this year seems unlikely. For those deciding whether to refix or refinance the mortgage, or for those grappling with a higher cost of living, here are 3 strategies to help reduce the impact of higher interest rates on mortgage repayments....

New Inflation numbers - what do they mean?

New inflation data came out yesterday,  and it was lower than expected. Many had planned and anticipated 7.5% inflation, however it came out at 7.2%. What does this mean? Are we about to see the peak in mortgage rates?The Reserve Bank of New Zealand (RBNZ) may be faced with the possibility of having to lower its forecasted peak of wholesale interest rates due to recent inflation figures. The latest Consumer Price Index shows that inflation may be slowing down, which suggests that the intere...

5 Year rates are lower than 1 year!?

Hey everyone, unless you've been living under a rock, I bet you've noticed that interest rates have risen over the past year. And if you're like me, you're probably wondering what the heck ASB bank is thinking by increasing their 5-year fixed term rate and reducing their 1-year fixed term rate.As of December 28, 2022, the New Zealand Interest Rate Swap curve experienced a significant drop, with the one-year rate decreasing by 14 basis points and the five-year rate decreasing by 66 basis points. ...

What is the OCR? and why does it effect me?

The Official Cash Rate (OCR) is the interest rate that the Reserve Bank of New Zealand (RBNZ) uses to implement its monetary policy. It is the rate at which banks can borrow or lend overnight funds with the RBNZ.The RBNZ sets the OCR at a level that it believes will achieve its policy objectives, which include maintaining price stability (low and stable inflation) and supporting maximum sustainable employment. The RBNZ reviews the OCR regularly and adjusts it if necessary.The OCR can go up or do...

I’m saving for a house, how much should I contribute to Kiwisaver?

If you are planning to purchase your first home, now or in the future, you are likely considering how you can best utilize your KiwiSaver. The way you contribute to your KiwiSaver in the years and months leading up to the purchase can make quite a significant impact on your ability to purchase. As you may be aware, you can choose your contribution amount. When your employer pays you, you can opt for 3%, 4%, 6%, 8%, or 10% to be put straight into your KiwiSaver. Alternatively, you can manually ch...

How can I clean up my (financial) image for the banks?

To be approved to borrow money, you will need to tidy up your finances and have at least three months of evidence of this. You don’t want to make changes to your spending that aren’t sustainable. Make a budget and decide what is realistic for you.Here are a few easy steps you can take to increase your lending ability-          Repay or reduce AfterPay, (or any other buy now, pay later accounts)-          Reduce the credit ...

The Bank Said NO, now what?

So, you’ve been to the bank, and they have said no; what my next step is?In addition to the Banks, you can also explore the option of a non-bank lender. These lenders have different risk tolerance and can be willing to work with less straightforward situations. Typically, they will still require a 20% deposit, but the key benefit is that they can be more accommodating in some less straightforward situations such as:-          If you are self-employe...

Mortgage Brokers, why you should use one

A mortgage broker is a professional who helps individuals and businesses find the best mortgage loan to meet their needs. They work with various lenders and can help you compare mortgage options to find the one that is right for you.Here are ten reasons why you might consider using a mortgage broker in New Zealand:Expertise and knowledge: A mortgage broker has extensive knowledge of the mortgage market in New Zealand, including the different types of loans and lenders available. They can help yo...

5 tips for buying your first investment property

Investment properties can be a great way to diversify your portfolio and generate passive income. If you're considering purchasing your first investment property in New Zealand, here are five tips to help you make a successful purchase:Research the market: It's important to have a good understanding of the local housing market before making a purchase. Look at factors such as median prices, supply and demand, and the economic outlook for the area.Consider location: The location of the property c...