Latest News from My Mortgage

Back to Blog

Fixed Rates vs. Floating Rates: Choosing the Right Mortgage Option for You

Fixed-rate mortgages involve entering into an agreement with your lender—typically a bank—where you commit to paying a set interest rate over a specified period. In New Zealand, you can typically fix your mortgage rate for periods ranging from 6 months to 5 years, with various increments like 12, 18, 24, 36, 48, and 60 months also available.The attractiveness of fixed rates often depends on the economic climate. For example, as of June 2024, shorter-term rates (such as 6 and 12 months) are h...

The Pros and Cons of Consolidating Debt Into Your Home Loan

Debt consolidation involves combining multiple debts into a single loan, typically your mortgage. This process can simplify your finances by consolidating payments into one, potentially lowering your overall interest rate. For instance, car loans, personal loans, and credit card debts often carry higher interest rates compared to home loans, making consolidation an attractive option....

Over 50 and buying property? Here's what you need to know about home loans

For many, the dream of owning a home doesn't retire at 50. In fact, entering the later stages of life can be an ideal time to reassess financial portfolios, consider investing in property, or even buy your first home. However, securing a mortgage after 50 comes with its own set of challenges and considerations. At My Mortgage, we regularly assist clients across a broad age spectrum, from enthusiastic first-time buyers in their 20s to seasoned investors who are well into retirement....

Will my Coffee Habit affect my Mortgage Application?

Funnily enough, a question that has become quite popular over the past few years: "If I buy too much coffee, will I be able to get a mortgage?" The short answer is yes, and that's fantastic news for all the coffee lovers out there!...

Rental strategies - is short or long term rental right for me?

In this episode of the My Mortgage Podcast, Greg and Claire delve into the realm of rental income options and explore diverse strategies for investment property success. From long-term rentals to Airbnb, rent-by-room setups, and seasonal variations, they uncover the nuances and opportunities in each approach.Greg starts us off by talking about the common methods of securing rental income: traditional long-term leases versus innovative approaches like renting by the room or leveraging the Airbnb ...

Navigating Home Loan Financial Hardship: How Banks Can Offer Relief

Financial challenges can arise for anyone, whether due to rising interest rates, job loss, illness, or changes in family dynamics. During these tough times, understanding your options for financial relief is crucial. Here’s a look at some of the strategies that can help alleviate financial pressures and how banks typically respond to claims of hardship....

Intergenerational Home Buying & Lending: A Growing Trend in New Zealand

In recent years, a noticeable shift has emerged in New Zealand's property market: more families are choosing to buy homes together. This trend of intergenerational living isn't just about sharing space; it's about combining resources to overcome financial barriers, care responsibilities, and more. In this blog post, we'll explore why New Zealand families are increasingly buying property together and the considerations involved in these arrangements....

Professionals you need on your Property Investment Team

In this episode of the My Mortgage Podcast, Greg and Claire uncover the important role of professionals in shaping a successful investment strategy. We start by talking about the role of mortgage advisors, emphasising their client-centred approach across various banks, ensuring optimal financial solutions and fostering long-term planning.They spotlight the significance of accountants in investment property ventures, clarifying their role in structuring tax optimisations and ownership frameworks;...

Landlords: Why Selling Your Investment Property to Tenants Could Be Your Best Move

As a landlord, the prospect of selling your investment property comes with several considerations, especially with the upcoming changes to the bright line test on July 1, 2024. This shift, reducing the bright line test from its current duration to just 2 years, presents a unique opportunity for both landlords and tenants....

What type of investment property is right for me?

In this episode of the My Mortgage Podcast, we're exploring the nuances between new builds and existing properties, navigating renovations, and understanding location dynamics.We're kicking off today by unpacking the differences between new and existing properties. New builds can offer distinct tax benefits and a streamlined lending process, while existing properties come with their own set of financial considerations and tax implications.There are two primary ways new builds come to life: fixed...

Reserve Bank changes - what you need to know about DTI's and LVR's

The Reserve Bank made some changes as of May 28th, 2024 regarding Debt-to-Income ratios (DTI's) and Loan-to-Value ratios, which is the percentage of a property's value that the bank can lend up to.These updates are pretty important for both homeowners and investors, so let's dive right in!...

Structuring your investment property purchase

In this episode of the My Mortgage podcast, Claire and Greg are diving into investment structures and ownership setups, exploring how they impact your borrowing ability and property ownership.We start today's episode by discussing the three most common ownership structures in New Zealand: Personal names, Look-through Companies,Family trusts. Each has its pros and cons, especially concerning tax implications and asset protection, and choosing the right structure depends on individual circumstance...

Tenants Buying from Landlords: A Strategic Move in 2024

With the recent changes to tax regulations coming in July 2024, many landlords are considering selling their investment properties. For tenants, this shift presents a unique opportunity to transition from renters to homeowners. In this blog post, we'll explore why purchasing the property you currently rent might be a strategic and financially savvy option....

How to use equity to renovate your investment property

Renovating an investment property can open up a lot of options and increase your cashflow significantly.When you have good equity in your property portfolio, it's a great way to add additional value, ensure you're meeting Healthy Homes compliance rules, and attract a great tenant.There is sometimes a perception that funding renovations can be a bit of a challenge, but not with good planning, advice, and an adviser on your Team! Here are some tips to help you navigate this process smoothly....

Government Announcement - First Home Grant changes May 2024

The Government has decided to discontinue the First Home Grant, which was the support they gave to buyers who had contributed to Kiwisaver for at least 3 years, and who met certain criteria around their income and the value of the house they purchased. Key things you need to know about the announcement...The sky is not falling - there are still plenty of options, and the First Home Loan, which allows a lower deposit and is Government guaranteed, is still in place.Kainga Ora aren't accepting...

"Show me the money" - How to fund your rental purchase

In this episode of the My Mortgage Podcast, Claire and Greg discuss how to fund your first investment property, and how this might look when you're approaching your bank.We discuss;Serviceability in property investment, breaking it down for everyday Kiwi homeownersThe big misconception - it's not just about rental income verses loan cost!Breaking down bank serviceability calculationsIncome is important - from salaries to more complex earnings like commissions, tax credits, and rental income. For...

Navigating the End of Your Fixed-Rate Mortgage: A Comprehensive Guide

Reaching the end of a fixed-rate term on your home loan can be a crucial time for homeowners. Here's a guide on what to do as your fixed rate comes to an end and how soon you can start looking at new fixed rates. We'll also touch on the current interest rate trends as of Mid 2024....

Why invest in property?

We're back for Season 2!In this episode of the My Mortgage Podcast, Claire and Greg talk about the power of leveraging investments, and why you should invest in property.We're talking about;How combining personal funds with borrowed capital can significantly amplify returns, showcasing the potential this has to enhance the overall value of a property.They discuss alternatives such as managed funds, stock market investments, business shares, and a variety of non-property-related investment avenue...

Buying Property in New Zealand as a Citizen who is based overseas

New Zealand citizens living abroad and looking to buy property in their home country face a unique set of challenges. Below we highlight key considerations for overseas buyers planning their return or investing from afar....

Bridging Finance in New Zealand: Is it possible and what else could you do?

Bridging finance can be a lifeline for homeowners looking to buy a new property before their existing one is sold. However, as Greg from My Mortgage explains, securing this type of loan isn't as straightforward as it used to be. In this article, we explore the intricacies of bridging finance and provide insight into making the best financial decision....

Strategies for Refixing Your Home Loan

When it comes to managing your mortgage, deciding how and when to refix your home loan is crucial. Here, we offer essential advice for homeowners approaching the end of their fixed-rate term, helping them make informed decisions tailored to their evolving financial situations....

Understanding the Ins and Outs of Home Loan Refinancing

Refinancing your home loan can be a strategic financial move, but it’s not without complexity. Let's break down what refinancing involves and what to consider before making the switch from one lender to another....

Navigating Home Loans for the Self-Employed

Navigating the maze of home lending as a self-employed individual can seem daunting. Unlike traditional salaried employees, those who own their own business or work as contractors face unique challenges when it comes to securing a mortgage. Greg from My Mortgage delves into this complex topic, offering valuable insights and advice for self-employed individuals looking to buy a home....

New Rules: Interest Deductibility - What is it and what are the new rules?

What exactly is interest deductibility? In this quick blog we’re looking at what interest deductibility is and what do these new rules mean?...When you think about investment property, you’d expect that it should be possible to produce a positive return, right?…A crucial piece to this puzzle is interest deductibility. The government is making some changes to these tax rules, and it's like they're putting a missing puzzle piece back in.Understanding the Puzzle Piece - Interest Deductib...

Should I pay money off my mortgage or should I add value to my property?

I recently had a client ask whether she should pay a lump sum off her loan, as her fixed term was about to expire, or use the funds she'd saved to put a new bathroom in her property.The answer around which option is best is actually not always straightforward.It depends a lot on your goals, interest rates, the market and a few other factors.Let's explore the options......