Non-bank lenders haven’t always had the best reputation, but as mortgages continue to rise and banks place increasing restrictions on lending, people are looking for different loan options. This month’s guest blogger, Eddie Biesenbach of Best Mortgages, explains the major differences between banks and non-bank lenders.Read More
After almost a decade under National, New Zealand’s government has changed. Naturally, changes to policy will follow. Whether these changes will be positive, negative, or neutral depends on you and your situation.
There’s a certain stigma associated with using a non-bank lender to finance a property purchase. Finance companies, especially after the Global Financial Crisis, are often seen as ‘bad lenders’ who are only looking to profit from a borrower’s misfortune.
Like it or not, house prices are big news. The last few years have been focused on rapidly rising prices – particularly in Auckland – and on the growing inability of first home buyers to afford property. Immigration and Chinese investment have taken a large part of the blame for rising prices – whether or not that assessment is accurate.
Is immigration slowing down New Zealand?
Immigration is at the heart of many of the economic and public service woes we’re presently facing, particularly in Auckland.
There’s the snarl of traffic congestion, the increase in cashed-up buyers pushing first home buyers out of the market and schools that are at bursting point. Transpose these issues against the high levels of immigrants coming to NZ (and the downturn in migration out of the country) – it’s clear that we need to reduce immigration until our infrastructure has caught up.
Debt-to-income ratios: how will they affect you?
If you’ve found it hard to secure lending for your clients since the LVR restrictions came in last year, the Reserve Bank’s latest plans could make it even tougher. They are proposing a new debt-to-income tool, designed to slow house-price inflation by limiting the amount that can be borrowed relative to income.Read More
New Zealand property has never been less affordable, despite record low interest rates. Rampant speculation, a severe under supply and high immigration means that housing in the lower quartile, particularly in Auckland, is selling at over $700,000.Read More
In many respects, it’s a great time to be in the business of mortgages and finance. The country’s buoyant property market, coupled with historically-low interest rates, is propelling borrowers to review, and often expand, their property portfolios.