Turn Key vs Build

By WMB Admin In Uncategorized No comments

Building a home can be a good option these days for various reasons. That includes the potential to get additional HomeStart subsidies from the government for first-home buyers, and property investors only needing 20% deposit rather than the usual 30% for an existing home. Generally there are two ways to build a home. Firstly, the […]

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Economic outlook shifts to downside

By WMB Admin In blog, Uncategorized No comments

The Reserve Bank is keeping the OCR “at an expansionary level” for now, but have indicated the next OCR move is likely to be down. The OCR has been kept consistently at 1.75 percent to support stable inflation, but with rising pressures the balance of risks to the economic outlook “has shifted to the downside”. […]

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Is 2019 the year for your first home?

By WMB Admin In Uncategorized No comments

Could 2019 be the year to make your first home a reality? We’re already well through February and people are starting to get back into the routine of work and day-to-day grind of paying off holiday bills! The start of January did see the Reserve Bank (RBNZ) slightly increase how many low-deposit loans banks are […]

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OCR to remain at 1.75 percent until 2020

By WMB Admin In Uncategorized No comments

The OCR will remain unchanged at 1.75 percent. The Reserve Bank continues to forecast no likely change before 2020. In the announcement today the Reserve Bank Governor Adrian Orr said they are expecting low interest rates and government spending to encourage GDP growth. The Bank intends to continue with its supportive monetary policy in order […]

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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

By WMB Admin In Uncategorized No comments

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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