Interest rates at all time low
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There is a reasonable chance you have already heard about the phenomenal rates being offered almost across the board now with most banks having rate specials down into the 3%'s.
What you may not be aware of is that you don’t necessarily need to wait until your current fixed rates expire in order to take advantage of these very low rates.
As a personal example yesterday I broke out of a 5-year rate that I had locked down circa 2 years ago for 4.65%. I incurred no break fee in doing so. I then re-fixed at a interest rate of......
What are you doing with your mortgages in 2018?
I’ve noticed most people starting this year with a bit of optimism. However, it’s hard to say how much of that is based around fundamentals, and how much is more attributable to the amazing weather we have been having and a decent summer break.
From our side of the Finance Desk, it has actually been a busy start to the year with quite a few purchasers signing up new properties over the break, and general rhetoric has suggested that well-presented properties have been moving relatively quickly. Most banks have also been in contact saying that they are.....
An early Xmas present from the Reserve Bank...
It’s not the relaxing to 70% that some investors had been expecting however the increase from 60% to a 65% threshold will in some cases be the difference in getting another property transaction across the line. That is the big news for investors in the Financial Stability Report which was released earlier this morning.
The last of the 5 C's - Conditions, What’s left for you to do?
Congratulations, you’re approved! What’s next?
The conditions of the loan offer are usually detailed in the offer letter itself, and can sometimes seem quite confusing, meanwhile you’re just concerned about how to access your money.....
The fourth of the 5 C's - Collateral, What is the Banks Security?
Collateral is basically the backing outside of a borrowers personal guarantee which can help a borrower secure loans. It gives the financier the assurance that if the borrower defaults on the loan, the lender can repossess the collateral. For example, car loans are secured by cars, and mortgages are secured by homes......
The third of the 5 C's - Capital, “Hurt Money”
The Third C, which many Kiwis are facing at the moment as the major hurdle for getting into the property market, particularly into their first home, is Capital.
Lenders will carefully consider the amount of capital a borrower puts toward a potential purchase, whether it be owner occupied, or investment. This can vary dependent on the .....
The second of the 5 C's - Capacity, The Ability to Repay
The next ‘C’ is Capacity. This is a test that the lenders conduct to satisfy themselves that the borrower can repay the loan that is being applied for based on the client’s particular circumstances. It is sometimes referred to as Serviceability too.
A bank will view the numbers quite differently to your own calculations, which is why you may sometimes experience a.....
The first of the 5 C's - Character
Credit is governed by what is known as the 5C’s, I will be doing a five-part blog on each of these over the coming weeks which should assist readers in understanding what it is banks look for when assessing finance applications.
As the credit market tightens banks will look more closely at finance applications, and we might find that more and more frequently, what was previously approved, will not be in the times ahead.....
Webinar - Successfully navigating the challenges of being a Property Investor and Landlord in 2017
If you missed our latest Webinar with David Faulkner on "Successfully navigating the challenges of being a Property Investor and Landlord in 2017" click on the below link to watch the recording.
Click here to watch the KPM Webinar
Financial Stability Report - May 2017
This morning the Reserve Bank has released its latest Financial Stability Report. This is released twice a year and has previously been the platform which the RBNZ has used to announce measures such as some of the previous LVR restrictions.....
Finance Market Update - April 2017
It’s been an interesting start to 2017 with a much tighter credit market than what we have seen for the majority of the last decade. While the majority of the media has been concentrating on the fact that the market seems to have slowed since the 40% deposit rule introduction I put more down to banks themselves pulling back in regards to.....
Is it time to fix my mortgage?
Debt to Income Ratios
Kris Pedersen gives an overview of the RBNZ's recent submission to the Government to have a new debt to income lending rule applied and he explains how this may effect borrowers in the future....
40% Deposit Restrictions for Investors Introduced by RBNZ
After both the RBNZ and the Government not implementing any significant property related changes in May in regards to the RBNZ’s Financial Stability Report and the Budget, respectively the RBNZ has this morning put a 40% restriction on the banks in regards to investment lending.....
Investment interest rates increasing
We have been commenting on this for a while and it appears that the banks are going to start to pass this on (although a number have not made comment or shown any price changes yet) the Reserve Bank is also conducting a further review to see if the Banks should hold even more capital on mortgage lending which could push interest rates up even further.....
