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Interest rate update - May 2014

Nothing ever stands still when it comes to interest rates and the last couple of weeks have been no different with minor tweaks from most banks.With the Official Cash Rate increasing last month the banks were tipped to increase fixed interest rates again but these have remained steady and we have even seen decreases in some places. The reason for this is that the trading banks have already increased their fixed rates considerably since the end of 2013, because of predicted rises in the OCR this ...

Guarantees & deposit assistance from family

With the Reserve Bank changes in late 2013 forcing most borrowers to have over 20% deposit there has been a much higher incidence of family assisting home buyers with funds towards their deposit for a home. There are a number of ways that this can be done and all have the pros and cons. Below we have covered some of the more popular options....

0% Home Loan!! Is this April Fool's?

Some of you may have noticed ASB advertising a home loan for 0% interest for the first month, that's no April Fools joke, they're really offering an interest free home loan. However this loan is likely to make fools out of a number of people who don't consider the true cost of the lending when taking up the promo.Much like in 2013 when the banks were offering free TV's and iPad's, people can be bought by the banks with these gimmicks which seem to be an amazing deal on the face of things. Some o...

What better gift to give on Valentines Day

Adam - "I know this is going to get me in trouble with my Fiance but as a lawyer, she is pragmatic and will appreciate the commonsense of this post, even if it is not romantic!"With Valentines Day coming along tomorrow, there is no better gift for the loved one in your life than to save them money on their home loan. Perhaps it's the mortgage you share with a husband or wife or you happen to have a crush on someone at work. Home loan savings keep putting money in your pocket for years, long afte...

Home Ownership Rates Drop

There was an interesting article posted on Stuff.co.nz this week. Although it was quite short and focused only on Auckland, the point it was making is quite valid.Home ownership rates are dropping, a lower percentage of people own their own homes than in the past, and that concerns us. The recent Reserve Bank changes to increase the required deposit for most borrowers to 20% is only going to further reduce the opportunities for people to get in to their first home... but all is not lost....

Time to fix?

The simple answer to this is, yes. For those of you who know me you will know that we always advocate fixed interest rates and a structured repayment plan for people earning a fixed income, which is most people. However, with an increase in the Official Cash Rate (OCR) forecast for March, which will lead to an increase in floating rates, you definitely want to be reviewing any floating lending that you have and making sure you are not facing a large increase in your monthly payments due to the i...

Options for less than 20% deposit

The deposit restrictions put in place by the Reserve Bank have been well publicised but have often lacked the detail of what options are there for potential buyers. As you will see below there are a number of options.First of all, we want to dispel the myth that it is impossible to borrow money if you have less than 20% deposit, this simply is not the case. It is much more difficult as the banks are now limited to how much they can lend to people with lower deposits. They can lend about half as ...

Interest rates increase

We have had increases in interest rates from a couple of banks this week with word that others are likely to follow shortly. The 12 month and 24 month rates have been hardest hit with increases of .55% and .70% respectively from the special rates previously offered.As we mentioned in our last newsletter, being proactive and fixing your loan ahead of rate increases is the best way to put you in control of the cost of your home loan. There are still good options available but we are likely to see ...