New Reserve Bank rules released today
There were two major announcements from the Reserve Bank this morning. The first was to restrict investors in Auckland by requiring a higher deposit, we'll cover that in more detail at a later date. The great news is that they have moved to allow the banks to lend more to people with low deposits who are buying properties outside of Auckland.
If you're a first home buyer or someone with less than 20% deposit and you weren't sure if you would be able to buy a property then this is great news for you. We can discuss your options and get a pre approval in place for you to buy your first home.
If you're looking to use your Kiwisaver then we've just updated a factsheet for the changes in April which mean you can withdraw even more from Kiwisaver than before. See below for download.
We've noticed a real scarcity of ability for the banks to lend to people with less than 20% deposit since the Reserve Bank imposed the rule restricting the amount of lending they could do for people with less than 20% deposit to only 10% of their total lending. This rule should change that.
Click here to view the full article from the Reserve Bank.
As always we can offer advice and find you the best options for your home loan. Get in touch today and we'll let you know exactly what options this opens up for you.Adam and the My Mortgage team