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.

  • Great experience chatting with Sarah about our insurances. She’s very knowledgeable and explains everything clearly, always makes sure that we have all the information to make an informed decision about how and where is the best place to put our money. Also helps that she’s absolutely lovely and very easy to talk to
    Sarah Martin - 22 May 2024
  • Scott has been absolutely incredible. I was initially hesitant to use a broker but I am beyond glad I did. Prompt, insightful, and reliable - will be using his services into the future.
    Kaleb McCall - 17 May 2024
  • We have never used a Mortgage Broker in the past and Scott Miller was amazing and made our refinancing journey very simple and straightforward. He is very knowledgeable and professional; would highly recommend Advanced Mortgage Solutions to anyone.
    Many thanks Scott.
    Alison and Colin Philip - 10 May 2024
  • I chose to work with Greg to help me buy my first home and I'm so glad I did! I honestly can't recommend him enough, he made the whole process so easy and stress free, helped me every step of the way to understand what I needed to do next and a lot of the time was doing all the work for me. Such an absolute pleasure to deal with, I sincerely appreciate everything so much and will be referring everyone I know your way!
    Cara Eve - 02 May 2024
  • For anyone considering or even contemplating a broker + advisor combination, look no further! I consider myself loyal to those who are strong to their word, provide genuine help and are able to put it in plain English so I can make an informed decision based on my circumstances.
    Leith Skinner - 30 April 2024