February 2019's Property Gazette
How Are You Placed for 2019?
How are you placed for 2019? Is this the year you will purchase your first home? Or will you use your home’s equity to enter the rental property market? Or will this be the year you can refinance your mortgage to achieve a lower interest rate?
2019 by all accounts is looking positive for first home buyers thanks to the easing of the loan to value ratios by the Reserve Bank in January. Lenders are now able to have up to 20% of all new mortgage loans to owner-occupiers with deposits of less than 20%, up from 15%. Lenders can also give up to 5% of new mortgage loans to a property investor who has less than a 30% deposit too.
If there are any signs of the RBNZ easing further, you can be sure we’ll let you know as soon as possible, so make certain you check our blog for the latest information.
What’s Going to Happen with Interest Rates This Year?
Both new borrowers and those looking to refinance their mortgage are in luck, with interest rates set to remain at record low levels until the beginning of 2021. Some lenders are predicting that the OCR will drop further to one per cent, with others saying it will remain at 1.75% until 2021.
While we don’t have a crystal ball, the confirmation from the RBNZ governor that they expect to keep the OCR at this level into 2020 as a sign of low-interest rates remaining.
Do You Have Mortgage Protection or Income Protection Insurance?
Having a mortgage requires you to make regular repayments to remain in ownership of your property. Failure to do so can result in a mortgagee sale and affect your ability to borrow in the future.
If you were unable to make mortgage payments due to illness, disability, redundancy or any other change of circumstances, what would you do?
Having mortgage protection insurance covers your repayments if you are unable to meet them. Each month an agreed lump sum will be paid to you, allowing you the opportunity to remain in your home.
Income protection insurance also pays you an agreed monthly lump sum, from which you can pay your mortgage and other associated living costs.
We recommend talking with our insurance advisor Shane Blummont about your specific circumstances, and he’ll be happy to give you a no-obligation free quote for the most suitable insurance product for you.
As always, our team is here to help. Please contact us directly for advice on both mortgage and insurance products today.
Awesome. We couldn't be more thrilled with our experience and have nothing but high praise for Scott Miller and AMS.Simon Thrupp and Sandra Paterson - 14 August 2018
Scott was always friendly and professional, and seems very knowledgeable about all the different lending institutions.John and Anna Sinclair - 05 May 2016
We are very excited as the consents were lodged for our build & hold project in Hamilton this week .Our rental purchase in Ashburton is now fully tenanted & is very cash flow positive!Ken & Louise Emshey - 12th November 2009 - 12 November 2009