Latest News from My Mortgage

Back to Blog

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......

What's up with DTI's?

In the maze of financial jargon out there, one term that has been buzzing around lately is DTIs, or Debt to Income Ratios. From economic pundits to lending institutions, everyone seems to be talking about how DTIs will shape borrowing and lending heading forward when some highly anticipated changes are made.But what exactly are DTIs, and should you be concerned about them? Let's break it down....

Up-to-Date Financials for Business Owners buying residential property

A crucial aspect of residential home lending for business owners is the significance of keeping your business financials up to date. In recent years, banks have become increasingly stringent about ensuring that businesses have current financial records, especially as the end of the financial year approaches. In this blog post, I'll delve into why having up-to-date financials is vital for business owners, particularly those considering property purchases in the coming months....

Navigating Current Interest Rates: Why a Short-Term Fix Might Be Your Best Bet

At My Mortgage, we've been closely monitoring the current landscape of interest rates as of February 2024. With rates fluctuating between 6.4% and 6.9%, depending on the chosen term, we believe it's crucial to consider a shorter-term fix. This blog post aims to delve deeper into the pros and cons of various mortgage terms and why, according to our team at My Mortgage, a shorter-term fix might be the optimal choice in the current market....

Applying for a mortgage while on a fixed term employment contract - How does that work?

We commonly hear people say that it’s impossible to get a home loan when you’re on a fixed term contract but is that true? Read on to find out more!...Every situation is different when it comes to fixed term contracts and the banks are pretty good at looking at the overall situation and applying some common sense logic around each unique situation. If you’re on a fixed term contract and applying for a home loan, the bank will look at a few things. What is your employment history?...

I’m in a trial period - Can I apply for a home loan?

It’s less common these days to see trial periods in employment contracts since the law changed in 2018 to only allow employers with 19 or less staff to include trial periods. But the question does come up every now and then - can I apply for a home loan during a trial period? A trial or (sometimes referred to as a probationary period) allows an employer to assess your suitability for the role you were employed for over a given timeframe (but no more than 90 days). There’s heaps more inf...

The property I'm buying has unconsented work

After the flurry of purchasing in 2020 and 2021 where many people purchased properties without much due diligence, over the past 6 months we're starting to see more buyers conducting thorough checks before making their offers.So I thought we'd delve into a topic that has been cropping up quite a bit lately: non-consented work on properties and how to approach it from a bank lending perspective.We've seen instances where properties have unconsented work, title issues, or concerns raised by b...

Can I buy a house and renovate it?

In the last six months I've had numerous questions from first-home buyers who are eyeing up properties that are now available at a lower price due to their need for some tender loving care!There are a number of factors we need to consider here to make the most of your deposit, your skills and any future uptick in property values over time, too so you can make the most of this opportunity....

Do lending amounts vary between banks?

One of the common questions we're asked is whether lending amounts vary between banks, and the answer is a resounding "yes". We'll run through a few of the reasons behind these variations and why having access to a range of lending options can be a game-changer....

How do I make an offer? Top tips for being successful

Property markets can ebb and flow and there are plenty of moving parts.Competition, price, conditions - what do these all mean and how can you be successful?We break down some of our advice and practical tips for securing your dream home....

We're having a baby - what does it mean for our mortgage?

Congratulations!The arrival of a baby is a joyous occasion, filled with excitement, anticipation, and a whirlwind of preparations.Amidst the baby showers, nursery decorations, and prenatal classes, there's another important aspect to consider: your finances.Specifically, how does having a baby impact your mortgage?Let's dive in!...

Tips for managing your home loan when times are tough

Life has a way of throwing curveballs at us, and sometimes, these challenges can make it difficult to manage our financial obligations. If you have a mortgage and are facing tough times, don't panic. Here are some practical steps to help you navigate through these challenges and manage your home loan effectively....

Revolving Credit vs. Offset - which is best for me?

When it comes to managing your mortgage, you've likely heard of revolving credits and offset loans. Maybe your sister, colleague or parent has recommended it as a great mortgage structure.But do you truly grasp the differences between these options and which one aligns best with your financial goals?Let's delve into the world of mortgage finance and explore how these two approaches can help you save on interest in different ways, and make the most of positive money habits....

Kainga Ora First Home Loan - am I eligible?

The First Home Loan scheme has been around for a while, but until mid-2022, plenty of people didn't know about it because it had some tricky price caps which were difficult for first home buyers to meet in a market where prices continued to increase.But fortunately that's all changed, so it's time we heard more about this nifty little support scheme which is now helping more first home buyers than ever into their first homes....

Buying with my parents - intergenerational living & home lending

Intergenerational living refers to multiple generations of a family choosing to live under the same roof. This could be parents and their adult children, or even extended family members like aunts, uncles, and grandparents. The lending aspect comes into play when these family members pool their resources to purchase a property together....

ANZ Blueprint to Build Version 2.0 2023

ANZ originally announced its Blueprint to Build in 2021 as a way to support the construction industry and help people to build new homes. You can read about the specifics of it here. Right from the start it was pitched as a short-term lending product that was going to have an end date. That time has come. All good things come to an end but to ANZ's credit, they have announced a new, more long-term version of their Blueprint to Build product. There are a few benefits to the new Blueprin...

What are break fees and will I get charged?

Break fees, or "Early Repayment Adjustments", are costs to the borrower often charged if a loan is repaid or adjusted before the end of an agreed fixed term.This fee is designed to compensate the lender for the potential loss of interest they would have earned had the mortgage continued as originally agreed.They commonly come up if you're considering refinancing, selling your home, or paying off your mortgage early, so understanding break fees can save you from unexpected costs....

Westpac 0% 'Greater Choices' Home Loan - Everything you need to know!

Exciting news is here as Westpac launches and expands their 'Greater Choices' home loan product. Formerly known as the Westpac 'Warm Up' loan...With a new maximum loan amount of $50,000, this offering aims to assist customers in creating a more comfortable, sustainable, and energy-efficient home life. By providing interest-free financing for five years, Westpac is committed to helping individuals transform their living spaces into warmer, drier, healthier, and more eco-friendly environments.Wha...

Buying with Less than a 20% Deposit - What are the options in 2023?!

Purchasing a home is a significant milestone in many people's lives. However, securing the right financing option can often be challenging, especially for first-time homebuyers or those with limited savings. In New Zealand, two popular choices for aspiring homeowners are the First Home Loan Scheme and applying to a bank for a high-LVR (Loan-to-Value Ratio) home loan. But what other options are there? In this article, we will delve into the key differences between these two options, shedding ligh...

RBNZ changes - 1 June 2023

After a bit of a rocky year for policy, with the CCCFA and lending restrictions providing challenges to banks and alternative lenders alike, we've finally had some reprieve with the RBNZ making some small changes to LVR (Loan to Value Ratio) limits on the 1st of June.These changes were welcomed by the banks and customers alike, so let's break that down and what it means for you;...

Co-Ownership - Buy with a friend or family member!

Over the last year as interest rates have risen along with the 'test rate' which banks use to assess your ability to service a mortgage we're finding we are having more conversations with clients about the levers we can pull to increase the amount they can borrow.One of those levers is 'co-ownership'...Or put simply buying with a friend or family member. You may have seen ads on TV about this recently and it's something we are doing more and more of - people are partnering up with friends, sibli...

Should I use cash first or get a home loan lending to buy a section?

So you're buying a section and then looking to do a house build, build a shed to live in or move a dwelling onto the property. You may be wondering whether it's better to use your cash or take out a home loan. While using the cash for the initial purchase may seem like the easiest and most straightforward option, there are a few reasons why getting a home loan may be the better choice....

Five things to think about when your home loan is coming up to its fixed rate rollover

For a long time now, it seems as if the Kiwi approach to refixing mortgages has been to simply refix at the lowest rate available at the time of rollover - Normally the 12 month rate! At a time when interest rates were going down, this may have worked pretty well for most people...But as we all know, that's not the case  so it's absolutely worth thinking a bit more about how you're going to refix and getting some advice from your mortgage adviser!Here's five things we, as mortgage advisers,...

Why can't I borrow as much as I want from the banks?

If you're in the market for a home loan, you might be surprised to find out that currently, the amount you can borrow from the banks is less than what you had in mind. There are several factors that contribute to this, but one of the main ones is the test servicing rate.The test servicing rate is the interest rate that banks use to assess whether you can afford to repay a mortgage, based on your income, expenses, and other debts. The Reserve Bank of New Zealand requires banks to use a higher tes...