Mortgages

In early August, the Reserve Bank of New Zealand (RBNZ) lowered the official cash rate to a record low of 1.0%, and indicated it could go lower. Along with some of the other possibilities described below, this has revitalised the old saying that “cash is trash” – or in other words, cash left for the long term in bank accounts is rubbish compared with what can be achieved by properly investing... Read more Read more

As the weather warms, the beach and barbeque are probably calling your name. Though something else worth spending a little time and attention on during the holiday season is your finances. Just like your physical health, your financial health needs a check-up at least annually. Before the year that has been like no other winds down, take some time to check in on your financial... Read more Read more

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First home buyers with a ready deposit and stable employment have been making the most of record low interest rates and a yearlong loosening of deposit rules. This is part of the reason there has been a surge in housing market activity since the Covid crisis first struck. Younger Kiwi’s still love property Before Covid, some had suggested that younger generations might... Read more Read more

We have now officially said goodbye to winter and are enjoying the first days of spring. Now is the time to take a fresh look at your finances to ensure you are on track to achieve your financial goals. Talk with us about your financial plan but, before doing so, consider the following: Are you getting the best from your mortgage? Interest rates are likely to start rising, so... Read more Read more

Recently proposed changes to the amount of financial backing New Zealand banks need to operate could have a significant impact on all New Zealanders with a mortgage – or about to get one. Such changes could also impact those saving money in the bank. Read more Read more

Buying your first home can be tricky. Over recent years it’s been difficult to visit any New Zealand news site and not see an article about housing unaffordability. The increase in property values over recent years has pulled back a little (even before Covid-19 struck), but for many, purchasing your first home can still seem like a far-fetched pipedream. Despite this, home... Read more Read more

While it’s always been a challenge to get together the deposit for a home, it’s certainly not got any easier for first-home buyers over recent years. Having a roof over your head to call your own is the cornerstone of most people’s financial plan, so to help out, here are the top five ways you can get a bigger home deposit: 1. Increase your savings Increasing your savings is a... Read more Read more

Even if you have a faultless record of repaying any debts, if you’ve ever applied for a credit card, home loan, phone contract or hire purchase agreement, you probably know the feeling that comes when you hear the words, “I’ll just have to run a credit check”. When a lender runs a credit check, they’re requesting information that relates to your history of repaying debt to help... Read more Read more

The last few months have provided the perfect storm which has benefitted borrowers and punished savers. New Zealand interest rates (or more specifically, the Official Cash Rate) remained unchanged at one percent in November. This left those who’d been holding out for a further drop in mortgage rates disappointed. Given the next review is not until February, with several... Read more Read more

Auctions can be a great way to buy a home, however they can also be challenging and stressful, particularly if it’s your first time. Auctions can bring out emotions based on attachment to a potential home, excitement, and sometimes they can also bring out a sort of primitive urge to win. With other methods of sale, you can make an offer, but you usually won’t know how many other people... Read more Read more

The government’s first home loan scheme is designed to help first home buyers, but across most of the country it’s becoming irrelevant. Milestone Direct’s mortgage advisers (“mortgage brokers”) have previously helped many young Kiwis gain homeownership with the First Home Loan (FHL) scheme back when the scheme was more accessible. First Home Loans are unwieldy and bureaucratic, with... Read more Read more

Three major banks have pushed home loan interest rates up this week, despite Auckland remaining in strict level four lockdown. Kiwibank was the first to move, increasing its one-year special rate from 2.49 percent to 2.65 percent. Its standard rate lifted from 3.34 percent to 3.5 percent. Five-year fixed rates shifted from a standard rate of 4.74 percent and a special rate of 3... Read more Read more

The Reserve Bank of New Zealand (RBNZ), who regulate NZ mortgage lending, has decided to remove the loan-to-value ratio (LVR) restrictions until 1 May 2021 in response to the Covid-19 pandemic. This change marks the end of nearly seven years of LVR limits. What were the LVR restrictions? LVR restrictions were limits placed on banks by their NZ regulator to reduce the amount of... Read more Read more

Mortgage mistakes can be costly – if not now, in the future. For all of us who already have a mortgage, here are the top six mortgage traps we should avoid, along with a few tips of what we can do instead. 1. Getting extra lending to buy things you don’t need As we repay the loan on our home, and as property prices increase, it’s natural for us to start feeling wealthier. We... Read more Read more

The Reserve Bank of New Zealand’s (RBNZ) Deputy Governor doesn’t want there to be an abrupt end to the six-month mortgage repayment deferrals (sometimes called a mortgage holiday) banks have been offering existing customers since the end of March. This has been predicted by most commentators in the area, as NZ’s general election and the end of the extended wage subsidy scheme – which... Read more Read more