Economic stress has a major impact on New Zealand’s housing sector, as rising interest rates and higher mortgage repayments stretch already tight household budgets. With the latest inflation figures showing price rises are not easing, the Reserve Bank of New Zealand could lift the OCR again this year to further dampen inflation. So, what should you do if you’re experiencing mortgage stress or are unable to cope with higher mortgage repayments?
Topics: Financial Health, mortgage stress, Financial Hardship
Refinancing your home loan has a number of benefits. A lower interest rate or better terms could help you pay off your mortgage much faster and help you reach your financial goals sooner. But, it’s important to be aware of the shortcomings too. Take a look at what you need to look out for when refinancing your mortgage.
Topics: Refinancing Options, Mortgages, Housing Market, mortgage stress, Refinancing, Mortgage Debt, NZ Mortgage Adviser
Choosing a mortgage involves a great deal more than simply approaching your bank for a loan. Shopping around both bank and non-bank lenders is an important part of the process which, regrettably, too many Kiwis neglect to do. It’s true that non-bank lenders haven’t always enjoyed the best reputation, but more and more home buyers are discovering just how effective this type of lending can be, particularly when banks say no.
Topics: Home Loan, new zealand real estate, nz mortgage, mortgage stress, mortgage adviser, Home Loan Rates, non-bank lender, lending options
Having your mortgage application declined isn’t necessarily the end of the road when it comes to your home buying journey. There are a few reasons why your lender may turn you down and understanding what these are is the key to your success. Here are 4 of the most common reasons why lenders may decline a mortgage application.
Topics: Credit Card Debt, Debt, new zealand real estate, mortgage stress, mortgage adviser, Budgeting, 2018 budget
As Auckland’s housing market continues to grow, albeit at a much slower rate, a major bank has forecast a decrease in house prices across New Zealand over the next four years. New Zealand’s labour-led government policies kick in this month, and an easing up of LVR restrictions could be just the boost first home buyers need. Take a look at some of the property market changes you could expect in 2018.
Topics: Credit Card Debt, Debt Consolidation, Debt, new zealand real estate, mortgage stress, mortgage adviser, Budgeting, 2018 budget
There’s no doubt that Christmas can be an expensive time. Family holidays, costly Christmas gifts, and maybe even a little something for yourself. Unfortunately, in January when the credit card bills start rolling in, reality hits many people. To help you overcome a Christmas debt hangover, we’re sharing our new year budgeting tips.
Topics: Credit Card Debt, Debt Consolidation, Debt, new zealand real estate, mortgage stress, mortgage adviser, Budgeting, 2018 budget
When it comes to choosing a home loan, interest rate is not the only thing to consider. Loan features – like the ability to make extra repayments, a line of credit, an off-set account, or repayment holidays – are just as important. To help you understand what features you could be offered by your lender, we’ve outlined some of the more popular options.
Topics: Buying, LVR, Mortgage, new zealand real estate, First Home Buyer, Second Home, house sales, mortgage ready, property sales, mortgage stress, low equity margin, LEM, loan to value ratio
The 2017 New Zealand election may be out of the way but its impact is still being felt in the NZ property market. Uncertainty continues to weigh in with spring sales noticeably lower than previous years. Nationwide residential property values rose for September, although a much smaller increase was recorded in the Auckland region. Read on to find out how New Zealand’s property market is expected to perform, post-election.
Topics: Buying, LVR, Mortgage, new zealand real estate, First Home Buyer, Second Home, house sales, mortgage ready, property sales, mortgage stress, low equity margin, LEM, loan to value ratio
Changes to the Loan to Value Ratio (LVR) and an overall tightening up on low deposit lending has seen banks and lenders charge a number of additional fees to borrowers with less than a 20% deposit. One of these fees is a Low Equity Margin (LEM); a percentage added to your interest rate that remains there until your loan reduces to the 80% threshold. As a borrower, it’s important you’re clear on exactly how this fee is charged.
Topics: Buying, LVR, Mortgage, new zealand real estate, First Home Buyer, Second Home, house sales, mortgage ready, property sales, mortgage stress, low equity margin, LEM, loan to value ratio
Despite record low interest rates, more and more homeowners are struggling to meet their home loan repayments and are experiencing “mortgage stress”. Even the slightest increase in interest rates could leave these homeowners vulnerable and unable to repay their mortgage. Let’s take a look at what “mortgage stress” is and how you as a homeowner can deal with it.
Topics: Buying, Mortgage, new zealand real estate, First Home Buyer, Second Home, house sales, mortgage ready, property sales, mortgage stress
