Are you looking for ways to pay off your home loan faster or reduce the interest you pay over time? Many homeowners ask us about two clever mortgage features that
Taking on a mortgage with a student loan may sound like a setback, but you’re far from alone. New Zealanders collectively owe around $16 billion in student loans, with an
What is a second mortgage? A second mortgage is an additional home loan that sits behind your first mortgage, using the house as security. When we say second, it refers
Auckland is the country’s largest and most tradable property market, yet after a sharp run-up during the pandemic, it has spent the last three years resetting. With mortgage rules easing,
Investors love quick yardsticks, and the capitalisation rate (frequently known as cap rate) is one of the most popular. It converts a property’s net operating income (NOI) into a percentage
Investors love quick yardsticks, and the capitalisation rate (frequently known as cap rate) is one of the most popular. It converts a property’s net operating income (NOI) into a percentage
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The Reserve Bank of New Zealand (RBNZ) sets the Official Cash Rate (OCR), after an OCR Review with a primary objective of maintaining price stability over the medium term, and considering the sustainability of house prices.
Here’s a breakdown of the rationale and factors influencing their decisions
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Between lively discussions in corporate boardrooms, and heated debates at the local café, Kiwis can’t get enough of talking about interest rates. It’s a topic that’s always buzzing. Interest rates
Should you fix your mortgage long, or is a short-term rate better, and what about floating?
The reality is that the best fixed term for you will depend on a mixture of the current market conditions and your personal financial situation.
Locking in for too long could mean you end up paying more interest if the rates drop.
But fixing too short may leave you vulnerable to sudden rate increases.
This month, the news from the housing market is actually quite cheerful – at least if you are a buyer. Mortgage rates have dropped again, prices are lower, and there are plenty of properties to choose from.
Don’t panic if you are considering selling though, it’s not all bad news.
Let’s look at the latest news and see what bright spots there are for buyers this month.
Clients often ask if it’s worthwhile obtaining pre-approved finance. They want to know the benefits of going through the process.
The realisation of how hard it is to be a homeowner becomes all too clear when prospective buyers start the process of reviewing their finances, calculating how much deposit is
Buying a home is something that many Kiwis dream about – but it’s a significant financial investment, and many have trouble securing the money to purchase property. Luckily, if you co-buy a home with a trusted ally, you could make your property goals come true.
Managing your debt effectively can be a challenge, but there are comprehensive options out there for New Zealanders searching for solutions to their debt and mortgage issues. Debt consolidation and mortgage restructuring could be the right pathway for you.
Non-bank lending is an option for potential Kiwi homeowners & rental property investors, whether you’re looking to purchase your first home or are interested in making passive income by renting out investment properties. Non-bank lending options are gaining popularity in New Zealand’s financial landscape, offering NZ homeowners & investors an alternative to bank lenders.
As we move towards the end of the year, mortgage interest rate news continues to improve!
The OCR has been cut twice with predictions of further cuts on the radar.
The question that clients often ask is – what do we do in this interim period when rates are tracking downwards yet promise to go lower still?
Should you fix interest rates or should you consider a floating interest rate?
In August 2024, the Reserve Bank (RBNZ) finally did what all mortgage holders were hoping for and cut the Official Cash Rate (OCR).
This triggered a flurry of interest rate cuts from all mortgage lenders.
Many of the longer-term rates are now under 6% which is welcome relief to many borrowers.
So why are the Longer Fixed Mortgage Rates Lower & Are They a Good Option?
The major banks all announced reductions in their floating and fixed term mortgage rates prior to a reduction in OCR in August 2024.
This was exciting news for borrowers and those with mortgage rates about to come up for renewal.
But why was there a drop-in mortgage rates prior to the OCR reduction…
Let’s investigate that now.
Many economists are predicting that interest rates have reached their peak.
People are voting with their actions – 56% of new loans, bank switches and top ups are currently fixed at terms of 1 year or less.
But of course, you never know what could be just around the corner for the economy.
What is the Best Option for you?
Don’t Have A Will?
Is your family full of mind readers?
It is pretty unlikely! So, how will they know what your wishes are if you don’t tell them? Especially if the unfortunate occurs and you are no longer there to tell them yourself.
That is why having a will is so essential.
Here are just a few of the reasons why you should definitely have a will in place…
2023 closed with the promise of interest rate relief hanging in the air.
The inflation numbers were going in the right direction and all the predictions were for the OCR to drop at some point in 2024, and interest rates with it.
Now, we sit on the morning of the first OCR decision of the year, and we are being warned it could go up.
How did we get here and when will we see the relief we have been promised?
As we approach the Christmas break, I wanted to extend my warmest wishes to you and your family for a very Merry Christmas and happy holiday season.
I also wish to take the opportunity to thank you for your ongoing support throughout 2023.
If you have any immediate requirements throughout the holiday season or wish to explore a scenario, please do not hesitate to make contact via email as I’m always happy to help.
Why Is It Bad to Have High Inflation?
In New Zealand, the target inflation rate is between 1 – 3%. As of October 2023, the current inflation rate is sitting around 6%. Clearly, we are quite far away from the target window.
So, why is it such a bad thing for inflation to be high?
Well, there are several reasons why we can see the Reserve Bank working so hard to bring the rate down.
There has been a lot of talk about fixed interest rates in recent times.
They were super low and now they are peaking at rates that are considered unsustainable for many households.
Fixed interest rates offered may vary between lenders, so it’s advisable to take advice from a mortgage broker to find the most competitive rate for your circumstances.