The financial outlook is looking bright – OCR cut to 4.25%
Today, the RBNZ cut the OCR to 4.25%, reducing it by 50 basis points. It’s been an active second half of the year, with two OCR reductions in recent months – August reducing 25bp from 5.50% to 5.25%, then 50bp in October from 5.25% to 4.75%. Today is the final change of the year and […]
How is our Financial Stability looking?
New Zealand house prices have experienced rapid both growth and decline in recent years, the typical boom and bust cycle that we see in the NZ property market. The Reserve Bank of NZ explains in its latest Financial Stability Report, that the drivers are a result of interest rates changes, government policy changes, population growth […]
Test Interest Rates continue to drop
Competition is brewing, and excitement is rising with major NZ banks continuing to lower their testing rates. As published in the latest Financial Stability Report Nov 24, the Test Interest Rates that lenders use to asses borrowers debt-servicing capacity have fallen from an average 9% to 8% in October. Westpac, ANZ and Kiwibank were quick to […]
RBNZ puts foot on the gas and cuts OCR to 4.75%
Today the OCR dropped by 50 basis points to 4.75%, signalling an optimistic economic outlook for many Kiwis which could boost consumer confidence and encourage more buyers back into the property market. Read full update here. Anecdotal evidence has pointed to a pick-up in activity over recent weeks, and Barfoot and Thompson’s Auckland auction clearance rate […]
📍You are here on the Property Cycle
Discover the power of falling interest rates and how they impact the Property Cycle. Lower interest rates can open doors for property buyers and create favourable conditions for property investment. What does this mean for you? First up, what is the Property Cycle and what is it used for? The diagram above is called the […]
RBNZ OCR Announcement
Like hearing the starting gun for the Olympic Games 100m final, NZ’s major banks were quick out of the blocks lowering mortgage interest rates in response to today’s RBNZ OCR Announcement. In the first cut since March 2020, the RBNZ OCR announcement cut by 25 basis points moving it from 5.50% to 5.25% – a […]
Will the DTI ratio changes throw your lending ability off balance?
The much-heralded Debt-to-Income ratio restrictions are finally here, and the question is what does it mean for home buyers and property investors? According to economic data released on June 20, New Zealand’s GDP has increased, albeit only marginally by 0.2%. Although this doesn’t warrant popping the champagne corks just yet, it technically means NZ is […]
Banking on the First Home Grant for your home loan deposit?
It’s likely you were banking on the First Home Grant for your home loan deposit? What can you do now if you’ve been caught short? Being a KiwiSaver member and eligible applicant would have allowed you to receive a grant of up to $10,000 for a brand new home or up to $5000 for an […]
Fixed mortgage interest rate coming to an end? Time for proper advice.
Interest rates rose as the Reserve Bank seeks to control inflation, although they have stayed steady in 2024 with the current OCR sitting at 5.50%. Is your fixed mortgage interest rate coming to an end? Time for proper advice. According to the latest OneRoof-Valocity figures NZ’s average property value hit bottom in June 2023, falling […]