Election time is less than a couple of days away and a lot has changed in the last 6 weeks with it being interesting to see if the ‘personality politics’ that worked so well for National under John Key also work with Jacinda Ardern taking the reigns over a Labour party that until that stage had managed to continue to trip over itself over the best part of the last decade. Under MMP....

 

Labour has targeted investors in its housing policy released. Ringfencing tax losses, five-year bright line rules and a tax committee (to mask their desire to bring in capital gains tax) are all on their agenda......

 

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.....


 

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 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 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.....


 

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.....

 

After a fun couple of months with the Lions and American’s Cup taking up much of the countries attention I now expect this to divert to the upcoming election. While the property market has already slowed considerably I expect it may continue to do so until post 23^rd of September.

While the mainstream media seems to be doing its best to crash the market in reality it is just not going to happen and there is no “cliff” we are about to fall off.....

 

Most of you will already be aware that funding is much more difficult than it was only a year ago and this is before proposed additional changes such as Debt – to – Income Ratios and the potential for the RBNZ to increase the capital banks require to hold. We have already seen over the ditch Australian banks be regulated in regards to lending on an interest only basis and here we.....

 

Buying a home is a dream of many Kiwis. It always has been, and always will be – even if it is perceived that it is now more difficult than ever.

With the fact that this is a large step for anyone, there is no such thing as being too careful, where do I start......

 

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

 

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.....

 

 

We at Kris Pedersen Mortgages recognise that the NZ property investment landscape has changed dramatically over the past 12 months.

This is reflected very clearly in recent RBNZ stats in regards to property investment lending being circa half of what it was this time last year. As a brokerage we aim to always stay ahead of the market in both our services and our advice......


 

I was recently asked whether there was an upper limit to the ratio between property price and household income, which in Auckland currently sits at about 10 to 1. In other words, the average property price is worth 10 times the average annual income.

Also known as the median multiple, this is an internationally recognised measure of housing affordability and is calculated by dividing house price by.....