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 have seen a number of banks tighten in this area as well with some requiring full applications to roll over to new interest only periods and others having a much lower LVR benchmark than previous to qualify.
While interest rates are still low it may make sense to review your current debt now to make sure you have it structured in the most effective way for both your current situation and that in the future.
As always we recommend to have your personal residence split away from your investment properties so checking whether now is a good time to do this is worthwhile.
We have already been approached by large number of borrowers in the last 12 months trying to put in place facilities or make alterations that were easy only a month or so prior to the changes that eventuated last year. As per the above possibilities don’t be one of the many who will wait too long as well until after further restrictions are put in place.
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