Covid-19 Mortgage Update
Isn’t it a crazy world we live in at the moment! Well done to all our essential workers and Kiwi’s doing so well in lockdown.
On the mortgage front, here are some quick key points:
- Thankfully the banks have been helpful in allowing interest only terms, extending loan terms, or as a last resort, a mortgage holiday (payment deferral) for 6 months (remember to check the ts and cs on this on the banks’ websites
- Try not to stress about your mortgage, the banks have to help you out but also don’t jump on a mortgage holiday if you don’t need one. Look at extending the term, going interest only or reverting to minimum payments if you have been paying extra
- Now is a good time to really do a budget and see where your money is coming and going. We can email you a free template if you need one!
- Whilst banks are still technically lending, and the Reserve Bank says it will likely remove LVR restrictions, the banks are being very cautious. They are looking at existing pre-approvals to check that your income and jobs are still safe and constant. As well as checking your deposit levels
- Following on from the point above, the banks in my opinion will start to get stricter on criteria and be conservative on low deposit lending. Especially when it looks possible that house prices could drop a bit
- If you do have secure jobs and income, now is still a good time to start getting your ducks in a row with the paperwork in readiness for a likely quieter housing market
- If you have unfortunately lost your job, use this time to craft a well prepared CV and don’t be afraid to approach companies direct. Whilst there have been industries where businesses have closed, there will still be others that flourish
As always, free to contact me any time with your mortgage questions.
Craig Pope [email protected]