Reserve Bank to ease LVR restrictions!

By WMB Admin In Uncategorized No comments

With banks tightening credit growth and house price  inflation easing, the RBNZ announced today that the LVR (loan to value ratio) restrictions were being eased. That means banks’ allocation for owner-occupied lending, 20% can be for over 80% LVR rather than 15%. For investors the maximum LVR is now 70% rather than 65%. The change […]

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Why go to a broker rather than direct to the bank?

By WMB Admin In Uncategorized No comments

Firstly, just a bit of background into how the relationship between banks and brokers works. Banks use brokers because they are a cost-effective way to introduce business to them. That means they don’t have to pay brokers’ salaries or cover their rent and other expenses. When a bank pays a commission to a broker the […]

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Are you prepared for a home loan application?

By WMB Admin In Uncategorized No comments

What seems to be a continual flow on effect from Australia, and also to an extent to what the Reserve Bank here wants to see, banks are getting tougher on the detail. That can mean further requests for proof of various bits of information including source of deposit, income and debts being repaid. About now […]

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No change to OCR—good news for mortgage rates!

By WMB Admin In Uncategorized No comments

Mortgage lending rates look set to stay low for the foreseeable future as the Reserve Bank indicate the Official Cash Rate (OCR) will likely stay at 1.75 percent through until 2020. The Reserve Bank says in the November Monetary Policy Statement (MPS), released this morning, that encouraging people to spend and businesses to expand and […]

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Banks keen on 95% LVR on KiwiBuild

By WMB Admin In Uncategorized No comments

The banks are starting to fall over themselves trying to entice potential KiwiBuild customers. One of our major partners are announcing they would consider a 5% deposit on a KiwiBuild. Interestingly this is nothing new in terms of lending criteria as strong borrowers have in the past been able to get 95% loans on a […]

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Parental help for first-home buyers

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It’s pretty common these days for parents to help kids by way of guarantee, gift or interest-free loan (commonly known as an acknowledgement of debt), but it pays for parents to still seek legal advice around the implications of this help. Banks will want any ‘loan’ to be interest free and repayment free so as […]

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How’re your business financials looking?

By WMB Admin In Uncategorized No comments

Coming into September and October banks start to be less reliant on business financials from 31 March 2017 as suitable proof of income. If your business is only a couple of years old, having up-to-date financials can be the difference between an approval or decline. If you are looking to potentially buy a home, investment […]

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Official Cash Rate remains unchanged

By WMB Admin In Uncategorized No comments

The OCR (Official Cash Rate) remains unchanged and appears it could remain on hold for some time. This is good news for borrowers and probably indicative that 1, 2 and 3 year rates seem to be the most popular. Now is still a good time to be ensure that you have the best loan structures […]

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Don’t rely on the bank valuing your loyalty

By WMB Admin In Uncategorized No comments

A common issue we often encounter is when clients buying a property have an offer accepted but have just hung their hat on their own bank approving the loan, only to find that after a lot of waiting the bank they have been dealing with has declined their application. Inevitably they have then run out […]

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Tougher scrutiny of borrower’s spending on the horizon

By WMB Admin In Uncategorized No comments

Last week I attended an Australian industry broker conference in Sydney. It was interesting to see the level of change happening in the lending environment over there where approx 55-60% of the market use a broker. One thing to come out of the Royal Commission looking into banks’ lending practices was a closer scrutiny of […]

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