Australia, last week, lowered its overnight cash rate and mortgage decreases followed. Our Reserve Bank has stated that our exchange rate is too high, our Government will not meet their fiscal targets, inflation is subdued and our unemployment is slowly rising. As we have stated previously, our Reserve Bank should decrease interest rates further, which would assist those with mortgages, as well as the export sector via a lower exchange rate. This is unlikely to ignite the housing market. A small portion of the market is active and appreciating, but this is confined to the inner Auckland suburbs. The rest of the country can only be described as stable. Christchurch is a bit of an exception. Let’s hope our Reserve Bank follows their Australian counterpart.
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.