As 2018 draws to a close, we’d like to thank you for your business and loyalty. It’s hard to believe how fast the years are going by. There have been a few very interesting topics in the news as of late, with the Reserve Bank of New Zealand’s latest announcement and low interest rates.
The Big Problem…
Last week, Tony presented to an eager crowd at the November Forum for the Canterbury Property Investors’ Association. There were some great discussions around interest rates, structuring your mortgage and insurance.
One of the main topics however, was what to do when your interest only period expires…
Visit our YouTube channel to see the full video on interest only loans.
Loan-to-Value Restrictions
The Reserve Bank of New Zealand announced on 28th November the softening of current LVR restrictions.
It has been forecast for a while but it’s great that it has now finally happened. We think the effect will be considerable and will encourage strong first home buyer and investor interest. When the LVR first eased from 40% to 35%, we saw investors starting to return to the market and now this latest news will give them a lot more encouragement to do so. Already, we have been inundated with calls, texts and emails wanting guidance from property investors.
This will also have a great impact on owner-occupied purchases too. While it appears to be minor, the extra 5% that Banks are able to lend to low-equity purchasers takes levels back close to where they were pre-LVR days. It feels like it’s getting back to ‘normal’ as it will
make life easier for people to enter the property market.
To summarise the announcement, what this means is the Banks will now lend to more people wishing to borrow in excess of 80% of their property’s value. And… you may be able to borrow up to 70% of the value of an investment property (up from 65%).
Merry Christmas & a Happy New Year
We appreciate you choosing Tony Mounce Mortgages & Insurance to provide you with financial assistance and security. It’s been a great year of helping our clients to reach their goals and we hope to continue supporting you throughout your journey on the property ladder.
Please note the Christchurch office will be closed for the Christmas break from 4:00pm on Friday 21st December 2018 until 8.30am on Thursday 3rd January 2019.
The team at Tony Mounce Mortgages & Insurance wish you a very Merry Christmas and a Happy New Year. We’re looking forward to soaking in some of that summer sunshine, and getting back into it for 2019!
Kind Regards,
Tony & the Team at Tony Mounce Mortgages & Insurance
Tony Mounce | Managing Director
mobile: 027 474 7550
email: tony.mounce@tonymounce.co.nz
website: tonymounce.co.nz