Most properties have gone up in value by quite a lot and home owners have been dealing with their mixed emotions. As the negative emotion is stronger than the positive their first concerns have been; are the rates going to skyrocket? And what else will go up as a result and when this all happens can we afford it? The flip-side emotion is joy. “I’m rich! Can I now say I¹m a millionaire?”
In Auckland in the past three years the average increase in property value has been 29 percent. Tens of thousands of dollars have been added to property values.
With more equity in your home there is a major positive outcome that a lot of homeowners are not aware of. It’s a better deal on the loan interest rate.
Many homeowners will now have more than 20 percent equity in their home however when they secured the home they may have done so with 10 percent or less deposit. Banks have a lending book restriction in place so if they can move your loan onto the 20 percent + equity side of the loan book then it frees up more low equity loan deals for them.
Another consideration is the OCR and how that may affect interest rates and your loan.
Kris Pedersen Mortgages says:
“Interest rates have taken an interesting turn with inflation being far below where both the Reserve Bank and most economists thought it would be.
This has resulting in most economists changing their forecasts from where they initially thought the next OCR rise would be in March next year to some questioning whether we will see another rise next year at all.
What this shows is that there is going to be ongoing uncertainty for quite a time yet and picking the perfect interest rate strategy is not going to be easy.
If you would like to discuss with us what the best interest rate option is for you and your position, or have us act on your behalf to negotiate competitive rates please contact Jenna HERE and she will work with me to gets the best rates and structure to suit you.”
The new Auckland Home CVs could offer up a positive impact on homeowners when they negotiate a better deal on their loan.
This blog article was written for PropertyBlogs by Mobilize Mail.