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When the property market goes quiet, it’s easy to assume buyers should sit tight too. Fewer people at open homes and less urgency around
buying can make waiting feel like the sensible option.
But a quieter market doesn’t automatically mean there’s less opportunity. For buyers who are financially ready, it may offer something
that’s harder to find when competition is strong: more breathing room.
Getting pre-approved for a mortgage can feel like a major milestone. You have supplied your information, the lender has reviewed your
position, and you now have an indication of how much you may be able to borrow.
It is certainly a valuable step. However, pre-approval does not always mean you can confidently make an unconditional offer on any property
within that price range.
There are still a few important pieces that need to fall into place
As widely expected, the Reserve Bank has increased the Official Cash Rate by another 0.25%, taking it from
2.50% to 2.75%.
This is the second consecutive increase following July’s move, with the Reserve Bank continuing to remove
monetary stimulus as it works to bring inflation back towards its 2% target.
Importantly, today’s announcement suggests the job may not be finished yet...........
For many Kiwi homeowners, refixing a mortgage can feel like a routine task. You choose a new interest rate, select a fixed term and move on.
However, your refix is also an opportunity to take a broader look at your mortgage and make sure it still suits your circumstances, cash
flow and future plans.
As you pay down your mortgage and the value of your property changes, you may build up equity in your home. That equity can sometimes be
used to help fund renovations, consolidate debt, invest or cover another significant expense.
One way to access it is through a home loan top-up. While this can be a cost-effective way to borrow, having equity
available does not automatically mean using it is the right move.
Here is what homeowners should consider before adding more to their mortgage.
Most of us have an everyday bank.
It’s where our salary or wages are paid, our bills come out, and our debit or credit cards are held. We may have been with the same
bank for years, so when it comes time to apply for a mortgage, it can feel natural to start there.
But does your mortgage actually have to be with the bank you use every day?
The short answer is no, not necessarily.
Most homeowners and investors set their mortgage up once and leave it there. But a home loan isn't a “set and forget” arrangement — and the
moments when your circumstances change are exactly when it pays to review it. One of the biggest of those moments is when you’re
restructuring how a property is owned: moving it into a company or a family trust. If that’s on your horizon, it’s also the ideal time to
look at whether your current bank is still the right fit.
The case for switching banks.....
For many homeowners, upgrading follows what feels like a familiar path.
Sell the current home, use the equity as a deposit, then move into the next one.
It's the approach most people expect.
But it's no longer the only option.