The Banks have increased their ‘qualifying’ interest rate for assessing debt serviceability. As a result loans that would have been secured earlier are now being rejected so preparation is key when applying for a mortgage.
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Many of you may be aware that the Reserve Bank has been planning to introduce a new rule that would immediately impact on property investors with five or more properties with one Bank. The rule instructs banks to classify clients with more than five properties as a ‘business’. These clients are currently assessed under the […]
In October 2013 the new RBNZ LVR restrictions took effect. Lending above the eighty percent threshold dropped dramatically and as it turned out the banks wrote a lot less than they were entitled to during the first three months. The new rule allows banks to lend up to ten percent of their new loans book […]
Further to our newsletter last year KPM Specialist Lending was launched 1st October 2013 headed up by Principal Brad Mower.
Bryan was one of my main business banking contacts at ANZ who many of my existing clients will already know. Unlike most bankers he always would look to try and find a way to make a deal work and assisted me in getting some deals across the line which were too complicated for other bankers.
Almost unanimously across the board economists agree that the OCR will be increasing from its current position of 2.5% to 2.75% on Thursday. This means that floating rates and revolving credit facilities are likely to go up by roughly the same amount. There may not initially be much change to the fixed rates as the […]
The RBNZ’s Lending restrictions have hit the market with less property sales last month than October 2012. However the real impact of the restrictions may not be fully realised for another six months. A month earlier (September) was a bumper month for sales as many purchasers rush to secure their property.
It’s 1 October 2013 and the new funding rules are in force – did you notice? As many of us know the new rules hit a lot of pre-approved loans prior to today when ASB Bank recently cancelled pre approved loans that did not meet the new lending criteria.
Well, I think now is definitely the time to consider fixing longer. With the US pulling back their Quantative Easing policy the longer term swap rates (which underpin interest rates) have shot up markedly.
Property Investors have you downloaded my Mortgage Structuring eBook? The One Bank Trap is a free e-Book providing valuable commentary on how property investors can avoid the one bank trap by structuring their mortgages effectively. This commentary is ideal for property investors growing their portfolios and dealing with the associated challenges
Kris Pedersen of Kris Pedersen Mortgages agrees that mortgage brokers like other services businesses in New Zealand need ongoing referrals to be really successful in the mortgage brokering business. Providing a superb service every time is vital for a mortgage broker. With experience and a good network of satisfied clients.
The conditions may be seen by many as ‘picture perfect’ for purchasing residential property in New Zealand but how long can we expect it to last?