Property investors around the country waited with bated breath on Wednesday 4th February for the RBNZ Governor Graeme Wheeler to announce tougher measures on property investors.
A couple of days earlier Catherine Harris author of this news item on Stuff suggested it may happen in the RBNZ annual address to Canterbury’s Employers’ Chamber of Commerce.
Of course this stirred up a lot of interest. The RBNZ’s annual address to the Chamber was probably more popular than its ever been before. However to the disappointment of some no announcement was forthcoming and property investors were let off the hook – for another day.
Kris Pedersen of Kris Pedersen Mortgages suggested on his blog that tighter controls on lending to property investors could happen in 2015.
Even if the 5+ rule doesn’t come in or is watered back in some way be aware that the RBNZ is not going to want the property market to continue to get out of control so there is definitely the possibility for further rules to be introduced this year potentially making finance harder to source.
Until that time comes, the recent launch of TSB’s 10 year loan product has taken over as the main talking point in the media and amongst lenders. It could be said the product has set the cat amongst the pigeons in the mortgage war. TSB can stand up as the first to bring the extended term loan to the market however it’s unlikely they’ll be the last.
The 10 year fixed rate interest term loan is not suitable for everyone. Like with any loan it would be wise to speak to your mortgage broker before locking yourself in.
This blog article was written for PropertyBlogs by Mobilize Mail.