In a recent survey of 1,000 Kiwis, 73 per cent of respondents say it’s simply too hard right now to apply and be approved for a home loan. What’s more, an even greater number believe it’s not worth the effort, as their mortgage application is likely to be declined. Surprising results when you consider that many of these would-be borrowers could probably have qualified for lending just seven months ago.

The changes to the Credit Contracts and Consumer Finance Act 2003 (CCCFA) announced by the Government earlier in June 2022, are due to come into force from July 7, 2022, with amendments to how lenders are required to assess affordability and more clarity around investments and savings as outgoings.

Rising interest rates are bad news for first home buyers and borrowers alike, with new homeowners (those who bought homes in the last 18 months) facing much higher mortgage repayments for the first time. With the Reserve Bank of New Zealand signalling further interest rate hikes are on the horizon, how can homeowners avoid placing strain on already tight budgets and stay on top of bigger mortgage repayments? Here are some options.

For some first home buyers, getting onto the property ladder could be a little easier, after Government announced in Budget 2022 changes to the First Home Loan and First Home Grant. Along with updates to house price caps, other changes included support for solo first home buyers as well as a 6-monthly review of house price and income caps, ensuring these remain up to date and reflective of market changes. Here’s an overview of the changes along with helpful information for eligible first home buyers.

The ongoing lack of housing supply in New Zealand has tempted many prospective homeowners into buying off the plan as a means of accessing the property market. But with higher inflation, a sharp rise in building costs, and unscrupulous developers delaying – or even cancelling – construction contracts, home buyers are being warned to proceed with caution. In this article, we’ll highlight what to look out for when buying a new build.

In the first quarter of 2022, house prices across New Zealand experienced the biggest drop in more than a decade. After several years of steep house price rises, this comes as good news for prospective homeowners locked out of the property market. But with rising interest rates, tougher lending conditions, and a higher cost of living continuing to impact housing affordability, even the 10 percent drop predicted by economists is unlikely to have a significant impact on first home buyers.

Most homeowners in New Zealand are justifiably concerned about rising interest rates and home loan affordability. In mid-April 2022, the Reserve Bank of New Zealand raised the Official Cash Rate (OCR) to 1.5 percent, its biggest rate hike in more than 20 years. A further increase at the end of May takes the OCR to 2 percent. At the same time, inflation has risen to a whopping 7 per cent, placing enormous pressure on already overstretched household budgets. Restructuring the mortgage could help reduce the risk of exposure to interest rate movements.

In its latest budget (May 2022), the New Zealand Government announced a raft of changes that would help more first home buyers get into their own homes. In addition to house price caps being removed from the Government's First Home Loan scheme, and the introduction of a single earner with dependent category, the First Home Grant house price caps are also increasing to be more aligned with lower quartile market values for new and existing properties. Here’s more on what first home buyers can expect.

Whether you’re married, in a civil union partnership, or a de facto relationship, when your relationship ends by divorce, separation, or death you are affected by the Property (Relationships) Act 1976 (the PRA). This act aims to provide a just division of the relationship property, including the family home and other jointly-owned property. Find out how the property of married couples, civil union couples and couples who have lived in a de-facto relationship is divided up in the case of divorce, separation or death.

Stricter lending conditions have put the brakes on mortgage applications, with many more first home buyers struggling to meet the latest lender requirements. Along with tightened bank lending caps to low deposit borrowers, and a far greater scrutiny on expenditure, some lenders have introduced a minimum committed income for approvals over 80 per cent loan to value ratio (LVR), making it even harder to get home loan approval. Find out what it means for you if the bank declines your home loan application, and what the next steps are in this situation.