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Worried about your mortgage being up for renewal? What are your options?

A recent banking survey by Horizon indicated there is a lot of pressure already on home owners with more to come.Around 3% of New Zealand mortgage holders are fearful they may have to sell a property over the next year – that’s equivalent to 43,000 home loans.In addition the study showed 51% of mortgages are due to renew and will roll over to the higher interest rates. The study showed almost one-in-three borrowers on fixed rates will see reviews between June and October this year, with 51% ...

Mortgage Rates Still Climbing in NZ

Mortgage rates may edge up further in the months ahead but economists and mortgage brokers spoken to by OneRoof don’t expect big hikes from now on.The Reserve Bank signalled in May it would not be lifting the Official Cash Rate further, leading to a premature expectation by homeowners that that was also the end of mortgage rate rises.Since the May hiatus major banks have continued to put mortgage rates up, some more than once. The OCR, however, is not the only factor in banks’ decisions...

Set yourself up for success when buying your First Home

Focus on the facts. Tens of thousands enter the property market each year in New Zealand and you can too.Once you’ve set the goal you need to make sure your finances are as healthy as they can be.Reduce any debt you may have and to do this you need a plan.Systematically work your way through any debts and minimise them if possible.A good approach is to focus first on debts with the highest borrowing costs.Another approach is debt consolidation to reduce the overall interest you are paying and ...

Mortgage Pressure - You're Not Alone

See the full interview HERE...

Is your bank no longer wanting your business?

In a shock announcement for HSBC mortgage holders, HSBC has announced that it will be exiting the New Zealand market.HSBC actively marketed itself as a bank offering discounted rates to what they determined to be “premium clients” attracting people with good incomes and strong deposits. If that is you, I expect you are not feeling treated like a premium customer right now.Many of our clients fit this profile and are high earning professionals who would rather have a personal touch and someon...

Managing your mortgage: A Guide to Mortgage Refinancing

Buying a home is a significant investment that comes with various expenses, including mortgage payments. While paying off a mortgage over a long period can be daunting, refinancing your mortgage can be a useful tool to reduce your monthly payments and maximise your savings.Refinancing your mortgage involves replacing your current mortgage with a new one that has better terms, such as lower interest rates and more extended repayment periods. This process can help you manage the repayments within ...

What impact does insurance have on buying a home?

Although a property may look great on the surface, there can be a number of reasons where it is usually uninsurable and this means that you cannot get finance from a bank.Reasons include:Unconsented workOlder homes with wiring that needs to be testedLeaky homesProperties in flood zonesCoastal or cliff-top propertiesThe home has been subject to an Earthquake Commission (EQC) claimWe sometimes come across situations where the vendor takes the house to auction, not realising the banks require full...

Changes to LVR restrictions

Since November 2021 many creditworthy borrowers have been blocked from obtaining finance by the LVR limits that were put in place due to the pandemic to reduce the risk to banks.Restrictions on high-LVR residential mortgage lending set a ‘speed limit’ on how much new low-deposit lending banks can do. A loan-to-value ratio (LVR) is a measure of how much a bank lends against mortgaged property, compared to the value of that property.The Reserve Bank has just confirmed new LVR limits that will ...

Once in a generation opportunity to buy (He said it not me!)

I recently had the chance to listen to economist Tony Alexander speak at the Financial Services Council Conference. Although many in the Media see the current market conditions negatively, Tony instead sees them as a once in a generation opportunity to buy property that historically would have been out of reach.Here are his reasons why now is the time to buy.1.     Migration is increasing at rates we have not seen for over 3 years. With the government relaxing migration red t...

Move to your own home not any home, when relocating to New Zealand

Whether you’re a new resident to New Zealand or an ex-pat returning to our shores, a big part of your relocation is establishing a new home. For many, renting may seem the easy option.The New Zealand property purchase process is very different to, the UK and USA and may seem confusing. But what if you had a coach in your corner with a clear path and a plan? What if you had an experienced financial adviser who used to work for the biggest NZ bank, knows not only what you need to do, but how to ...

My Money December Newsletter

And it is certainly time for a break. I would like to say a huge thanks to all our clients, our preferred partners and support people for helping us thrive this year.Please note that we will be closed for the holidays from 24th December 2021 and re-open on 10th January 2022. For any urgent support during this time, please contact Stephen directly on 027 5408 900...

The process for obtaining a mortgage

This flowchart explains the process and the way I can help. It has become considerably more involved than it ever was before. The left side shows the steps and the right side where I fit in. Thought it might be of interest to you....

My Money October Newsletter

This week the Reserve Bank has lifted the Official Cash Rate(OCR)to 0.50 per cent. This was expected, and as they were poised to do back in August before the Level 4 lockdown was announced.Madison Reidy from Newshub called up and wanted an interviewon the impact of the change for first home buyers so it was outsidefor a conversation despite no haircut for 7 weeks!In our last newsletter, we touched on the changes that were coming, and already the impact is being felt. What the changes will i...

Teaching Your Child About Money

When is a good time to start teaching children about money? The answer is as early as you can. Research shows that kids as young as three can grasp basic money concepts! This week Stephen from My Money had the privilege of talking to a local school about money to help build their confidence, awareness, and resilience around this critical aspect of life. "The Pocket Money Guide" is a great resource to help you start the conversation with your children. Contact me if you would like to know more. ...

Stephen Robertson In The News

A short clip from the news this week with our own Stephen Robertson. On the topic of the "Mortgage Holiday Scheme" coming to an end, If you find yourself struggling, don't do it alone. There are tools to help. Tony from Money Trainer is a money coach who I highly recommend. Engaging with a money coach is simply bringing someone alongside you whose role is to help you discover what is right for you. Recently we helped a couple who had invested in a brilliant wedding and needed to build up a depo...

Why Use a Mortgage Adviser?

As Mortgage Advisers, we take care of all aspects of the application process and our application form is accepted by all of the lenders. We stay up to date with which bank prefers which type of deal and which type of client – giving every type of deal (no matter how big or small) the best chance for approval.  The fact is that one Bank may lend you tens or even hundreds of thousands of dollars more, on the same day given the exact same circumstances, than another Bank. A good adviser will...

Deposit saving ideas

First, set a goal and a date. Without a date, you will never get there. Set up a separate bank account for it. Call it ‘House Deposit Savings’ so it removes the temptation to dip into the funds. Ignore the interest rate on the account, as it will be small and will not be a big factor in achieving your goal. Now set a realistic date, say three years from now. Explore whether you qualify for the ‘Welcome Home Loan Scheme’. This will reduce the required deposit from 20% to 10%.&nb...

How to save the home deposit and not keep renting

Your rent can often be about the same as you would pay in mortgage repayments, so why not own the home! First home buyers account for nearly a quarter of all house sales right now, so its good news out there. But the challenge is finding the deposit. Here are some ways to bring you closer to achieving this.  Deposit saving ideas   First, set a goal and a date. Without a date, you will never get there. So, let’s say you need $100,000 (20% of $500,000), then set up a separate bank...

Reserve Bank removes LVR restrictions for 12 months

In keeping up to date with developments across the finance industry, the Reserve Bank has announced they have decided to remove mortgage loan-to-value ratio (LVR) restrictions for 12 months. The Reserve Bank’s decision was made in line with its financial stability mandate.Introduced to protect the stability of the financial system as house prices climbed, the LVR rules placed restrictions on how much of a bank's lending could go to borrowers with a deposit of less than 20 per cent of the ...

My Money December Update

New Zealanders can expect to pay approximately $5 more a fortnight on a $100,000 mortgage as commercial banks are ordered to increase the capital they have in their reserves.That is one of the estimated effects from the Reserve Bank's much-anticipated decision on how much capital banks should hold so they can ride out future financial crises."More capital in the banking system better enables banks to weather economic volatility and maintain good, long-term, customer outcomes," says Reserve Bank ...

True Mortgage Story Of The Week

Michael and Sue approached their bank to upgrade their home in a rural area which had a house, flat and small cafe. Both Michael and Sue are self-employed and don’t need income from café to service the loan. Their NZ bank approved the loan and they went unconditional. Then to their surprise the bank said they would treat the whole loan as commercial and charge 7.3% Their bank adviser was apologetic and encouraged them to shop around. We met them understood the issues and have experience ...

Latest market update from Stephen Roberston

Interest Rates  Don't think rates will fall further? they can, and they will. ANZ predicts another 3 rate cuts by May next year.Coolest Rates: 3.54% for 1 year, 3.45% for 2 years, cash backs available for new lending. Short Case Study   Melissa approached her bank for debt consolidation and tax payments plus a renovation budget to prepare the house for sale to upgrade. Melissa is a contractor in project management with short term rollovers of contracts. Me...

Government’s announcement of changes to home ownership products

The Housing Minister this week announced a number of changes to the Homestart Grant and the Welcome Home Loan to come into effect on the 1st of October. To summarise here are the key points of the Minister's press release: The minimum deposit requirement for the First Home Grant will reduce to 5% for both new and existing homes (currently the minimum deposit is 10%)The First Home Grant can be paid to all buyers, who are eligible for the grant, where there are three or more buyers, by removi...

BAYLEYS AFTER FIVE ECONOMIC OVERVIEW

Through my long-standing association with Bayleys we are pleased to be in a position to offer a limited number of spaces to this informative event at a pivotal time in NZ’s economy where one of the best known economic voices will share his views. Come along and listen and bring your questions...

Recent Case Studies

Some interesting recent cases I have dealt withI get all sort of people coming to me, some with very interesting stories. Here are three: Are you thinking you could get better rates? A top client asked his bank to offer him better rates and calculate a break fee. He was offered an extra $1,000 to stay with his current bank but we saved him over $2,000 by switching for a better deal.Young couple were trying to buy first home and he was on temporary employment contract so kept getting knocked...