Several New Zealand banks have announced an increase in the loan-to-value ratio (LVR) for investment property lending taking it from 65% to 70%. This change creates an opportunity for investors to have their mortgage lending reviewed. Erskine Owen Mortgage Broker, Wendy Ryan-Kidd says this is a positive move for investors allowing them access to further…
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The NZ Government has decided they would rather pass a housing package through the eye of a loophole than confront the obvious supply side constraints in the housing market. But this camel has more than one hump and the unintended consequences of their policies are likely to hurt the people the package is designed to help. How…
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Our last interest rate article discussed the long term historical average rate sitting below 5%. We now have an OCR rate cut of 25 basis points, providing more evidence that rates will not be rising beyond 5% for the foreseeable future. What is perhaps more interesting is there is a widely held view that we…
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Why mortgage interest rates might not track directly with the OCR
Have you noticed how people have stopped talking about house prices and started talking about interest rates? That’s hardly surprising given the high percentage of Kiwis paying interest on a mortgage or loan of some description. The value of our houses increasing makes us feel wealthier but doesn’t have any direct impact on our cashflow.…
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