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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...

When is a good time to start teaching children about money? The answer is as early as you can.

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. ...

A short clip from the news this week with our own Stephen Robertson.

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 ...

How would you like to pay half the interest rate your bank quoted just due to property zone? True story from this 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...

The importance of having a good insurance adviser

Recently I was reminded of why it is so important to have a good insurance adviser instead of being a number in queue at the bank or direct supplier. My youngest son was admitted to hospital with a life changing diagnosis. Thankfully he will be OK.It was a stressful time for our family emotionally, physically and it had a financial impact. I was told by my policy holder that "he's not entitled to anything". My direct adviser reviewed the medical policy and foun...

Currently Renting?

Have you ever thought your rent payment would be better spent paying your own mortgage?Are you wondering how much you could borrow based on mortgage payments being what you currently pay in rent? Situations can change. Perhaps your landlords are selling the house you live in and now is a good time to buy your own home. Maybe your family is expanding and you are looking to purchase your own home. What ever the reason, our calculator may be able to help you know what you could afford.Use our ...

What to look for in a business broker?

There are a lot of people out there who are thinking of starting one business or the other. One problem they are encountering now is how to get financing for their business. There is no business that doesn’t need funding, even the non-profitable organizations need funding (they get their funding most definitely from sponsors). Most people only know one place they can go to get loans which is the bank.However, a business loan broker could be the perfect fit for your situation at the moment. Any...

4 good reasons to work with a Mortgage Broker

Why would you work with a Mortgage Broker when you are considering to buy property? Looking for a property, either your new home or an investment property, can be overwhelming. There are quite a few skills you need to make it to the finish line and settle on a property that is right for you. We can mention a lot of hurdles that can be in your way: Auctions, counter offers, misleading ads, unclear building and pest reports to name a few: It can all take its toll. Combine this with finding the be...

Pros and cons of debt consolidation

What are the Pros and Cons of Debt Consolidation? Taking out a debt consolidation loan can be a good option for anyone that finds themselves in a position where they find it difficult to meet their payments on their debts every month. If you are only meeting your minimum payments on a debt you will probably struggle to reduce the principal amount you owe and your debt could actually increase through added interest on your debt.Debt consolidation could be a good option for you into managing your ...

Foreign buyers ban – does it affect you or someone you know?

Buying property in nz: Changes are on their way! As you may have heard last week, the Government’s Overseas Investment Amendment Bill (overseas buyer ban) passed its final reading. The legislation though is not yet operative. The date on which the Act commences will be detailed Soon. Royal Assent has been given. No doubt it will be widely reported but I will try to advise you of the relevant dates as soon as possible. Please check back to this article if you want to be kept up-t...