January 2018's Property Gazette

Will 2018 be a year of change?

Happy New Year! We’re looking forward to helping our clients achieve their property goals this year, including you! 2018 is set to be a year of change, with the implementation of new policies which will affect the property market.

Reserve Bank to Ease LVR Restrictions

From 1 January 2018, the Reserve Bank is easing up on the loan to value ratio restrictions. Banks will be able to lend up to 15% of new mortgage lending to owner occupiers who have less than a 20% deposit. In addition, 5% of a bank’s new mortgage lending can be to residential property investors who have a 35% or less deposit.

If you’re a first home buyer or investor who’d like to take advantage of the easing of LVR restrictions, give us a call today on 0508 466 356.

Changes to the Responsible Lending Code

Amendments to the Responsible Lending Code came into play in June 2017. Lenders are required to follow the Act and must:

  • Be satisfied the borrower can pay the loan without hardship and the loan meets their needs
  • Be accurate in their advertising and contracts to not be misleading
  • Act reasonable and ethically in all dealings
  • Not to use oppression
  • Meet all other legal obligations to their borrowers

Have You Made the Correct Tax Declarations?

If you are receiving income from or living overseas, it’s important you have made the correct tax declarations. You need to let the IRD know what your tax residency is because NZ residents are required to pay tax on their worldwide income. You can learn about this on the  IRD website and avoid any nasty tax surprises.

Will a Capital Gains Tax Happen?

The Labour Party campaigned on introducing a Capital Gains Tax, but have since said that no new taxes will be introduced until 2020. In the meantime, the Government has established a Working Tax Group to assess the implementation of such a tax.

This will not affect residential owner occupier properties, but rather investment property owners. According to the Labour Party website, the Working Group will “focus on measures that will address the imbalance in taxation on gains from speculation in property and income from other sources.” (Labour Party Website).

We’d be more than happy to discuss the implements such a tax may have on you. Fill in our Contact

Is Ring Fencing on the Way In?

The Labour Government has signalled an end to negative gearing of rental properties. This means investors will no longer be able to offset losses from one property onto other income. Instead investors will have to ring fence losses to individual properties, which is set to hit investors who own multiple properties the hardest. It is estimated this will lose investors around 20% of their loss tax deductibility each year.

Once again, from all of us at Advanced Mortgage Solutions, Happy New Year! We look forward to working with you throughout the year.

  • We couldn’t be more grateful for Greg Miller’s support in our journey to buying our first home.
    Diego Maciel - 09 September 2025
  • Sitting in the house my husband and I own all thanks to Scott/Advanced Mortage Solutions. The expert advice and 10 step guide he walked us through made the process feel like an absolute breeze! I can say with confidence that we would not be in our dream home if it wasn’t for Scott holding our hands through it. Scott also offers great recommendations of Lawyers and Insurance brokers who have been absolutely amazing too (Shout out to the wonderful Greer at Pier Law!). Thank you so much Scott & Advanced Mortage Solutions!
    Hope F - 01 September 2025
  • I had an excellent experience working with Scott from advanced mortgage solutions towards my current mortgage. The process was made super easy and I could not recommend them enough for home loans
    Holly Coleman - 31 August 2025
  • Greg was super helpful in assisting me through my first home purchase. He made it easy and understandable for me to navigate a wealth of new information all on my own and always felt like he had my best interests in mind. The process was easy to follow thanks to Greg's clear communications and he was very generous with his time when meeting in person to answer any questions I had. I would recommend Greg to anyone needing a mortgage adviser.
    Sophie Hocart - 30 August 2025
  • I am so thankful that we had Greg as our mortgage broker. Greg went above and beyond to help us. He was super knowledgeable and helpful. He was always available to answer our questions - even when they weren’t strictly mortgage related. I would definitely recommend Greg to anyone needing a mortgage broker - especially first home buyers.
    Rose Crean - 25 August 2025