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Get the latest news and tips about mortgage finance and the property market. Scott Miller, mortgage broker from Advanced Mortgage Solutions comments on housing and lending.

February's Property Gazette

Published by Scott Miller on Thursday, February 01, 2018 in

Getting Off on the Right Foot This February

If January has been any indication, it looks likely the February and 2018 is going to bring good news for home buyers! With residential sales in Christchurch going well and with the average house growth price the lowest in recent years, first home buyers and investors are reaping the rewards. But there is more good news on the horizon and we’ve compiled it all here for you.

2018 is Looking Good So Far

 From January 2018, loan to value ratio restrictions have been eased. This has resulted in a move upwards from 10% to 15% of a lender’s new mortgage lending can be given to owner occupiers where their LTV is more than 80%. This means you may now be able to get that home with a less than 20% deposit. Check out our guide on getting a mortgage with a low deposit for more information.

First home buyers now have more housing stock to choose from when purchasing their home. With the average house in Christchurch having risen only 1% in value over the last year, they are no longer facing the enormous burden of saving for an ever-increasing deposit while paying rent. This has also seen some property investors selling stock in some areas to purchase where there is more growth. As a result, there is significant stock on the market, meaning less competition with other purchasers to raise prices in bidding wars.

Buying a house - what insurance do I need?

Recently I picked up my daughter from a shift as a checkout chick at the supermarket (I don’t recall why I was the taxi driver!). Anyway, to my surprize she greeted me with a beaming smile and exclaimed “how wonderful it is to be back at work”.

The statement “how wonderful to be at work” grabbed my attention as I considered that’s not something you here people saying, however it is what all working people should be thinking.  Being able to work and generate income is our greatest asset, without it the ability to get by can be severely challenged. (In the previous 2 months my daughter was diagnosed with glandular fever, therefore was not able to work at all.)

No matter what you do for a job, where you are in life, there’s always a requirement to protect yourself and your loved ones. Life can change so unexpectedly – you have no idea when you’ll “need” insurance. This is why it’s important to do some advanced planning.

In New Zealand we are privileged to have ACC, however it only applies to accidental injuries. ACC will cover up to 80% of your “taxable income” but ACC does not pay anything if you become ill and cannot work or die from disease. Degenerative conditions that haven’t been caused by your work are also not covered. There are other government benefits, but these are not related to what you earn, e.g. a Sickness Benefit of $229.01 per week if you are single, or $381.68 for couples; ACC and the Sickness Benefit are taxable.

When you think of the time, effort and money involved in buying a house, it makes sense to protect the source of income that will sustain it.

For most, our homes will be one of the bigger financial commitments we undertake, you need to ensure that it’s protected from the unexpected. This protection can be achieved by having suitable insurance in place that will assist and provide you with a level of comfort when the unexpected happens.

Cover your income - ensure that in the event you become disabled or sick and cannot work or earn an income for a period of time, you can continue with mortgage repayments and the associated costs of owning a house.

Protect the people who live in the house. Life insurance should allow the family unit to stay in the house if anything were to happen to you.

Insure your home and know what your policy insures you for, more importantly, what it doesn't. This insurance will allow you to repair or rebuild your home if anything happens.

Decide on the type and term of your mortgage so you can factor in the costs of insurance from the beginning.

Protecting Your Family & Assets in 2018

If the worst happens, are you prepared? Having house, contents, car and mortgage protection insurance ensures your assets can be replaced if destroyed, lost or damaged. Our team of insurance specialists are here to help, and we welcome the opportunity to check over your current insurance and advise you on how you can best protect the things you value the most.

Contact us to get free personal mortgage and home loan advice

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