Interest rates are at lows not seen since the early 1970s. Rents, particularly in the major cities, are high and are continuing to rise. In many cases, it costs now roughly the same to own a property as it does to rent it. If your income is relatively secure, this is now the time to consider owning your own property. Mortgage rates are low, but if you are worried about them rising and making it harder to meet your repayments, it is now easy to fix them and protect yourself. Many renters complain about the quality of their accommodation. By owning, you can steadily improve your property and this may be reflected, over time, in an increase to the capital values.
In an effort to put the brakes on a runaway property market, from 1 May 2021, the Reserve Bank of New Zealand has implemented Loan to Value Ratio (LVR) restrictions that impact the way property investors access mortgage finance. Going forward, a maximum of just 5 per cent of banks’ lending can be done at above 60 per cent LVR. For property investors, that means having at least a 30 – 40 per cent deposit. Here are 3 tips that could help property investors navigate high LVRs.
Interest rates have hit record lows over the past year, but an improving economy is likely to put pressure on interest rates rising sooner than expected. Locking in a fixed home loan rate could be the answer for borrowers seeking certainty for a fixed term. As always though, the best solution depends on borrower’s own circumstances and it’s advisable to seek advice from a mortgage adviser before making any interest rate decisions. If you are considering fixing your home loan rate, here are 5 questions to ask.
There’s no better time than right now to review your home loan structure and mortgage interest rates. Time to tidy up those external debts, refinance to a better interest rate, or refinance to release equity to fund that new car, boat or investment property. If you’re not sure what repayment structure works best for you, here’s a guide to understanding the different types of loans.
The Reserve Bank has cut the Official Cash Rate (OCR) for the first time in two years; down 25 basis points to 1.5 per cent, the lowest it’s ever been. Retail banks have been quick to pass on the rate cut: Good news for home owners and first home buyers.
The heated mortgage battle amongst home loan providers could get even more interesting, as economists now believe the Official Cash Rate could be cut as soon as May or August 2019, and interest rates could start to fall in August this year. This follows comments made by the Reserve Bank of New Zealand at the end of March 2019. A home loan review could help you decide whether refinancing is the right option for you.