Is now a good time to buy a house?
After reading the analysis from 3 of the major bank’s economists and because the Reserve Bank of New Zealand (RBNZ) have not ruled out a negative Official Cash Rate (OCR), it is reasonable to anticipate mortgage interest rates to drop. They are already at an all-time record low.
The question on everybody’s mind is; what does this mean for the property market. More importantly is now a good time to buy a house or should I wait for the big crash that everyone was talking about post the Covid-19 fall-out.
Home or Investment Lending Inquiry
Use this form to enter key details about your financial situation. This information can be used to assess your borrowing ability, to help you meet your goals for buying a residential property.
Information you enter here will be sent to one of our advisers who will contact you within 24 hours.
Your information is confidential and will not be shared with any person outside of Hunter Mortgages Limited without your permission.
Reserve Bank removes LVR restrictions for 12 months
The removal of LVR restrictions may not be the game changer that everyone thinks it will be.
Engage a mortgage adviser
Mortgage advisers know the application criteria for different lenders and negotiate for better interest rates. If a bank says NO they may be able to find another bank or lender that will say YES. More often they can get a better deal for you than if you go direct.
Get yourself pre-approved
Having a pre-approval in place has a number of benefits. It shows sellers and agents that you’re serious about buying and helps you present a cleaner offer to the vendor. It’s also one less thing to worry about once your offer is accepted too as there is a lot to do at that stage.
Don’t rely on your own bank
There are two situations when your own bank might be the wrong people to ask for a mortgage from.
- Another bank/lender may offer a better deal.
- Your bank may say NO when another bank/lender may say YES.
Shop around for the best solution, this is where a mortgage adviser comes in handy because they doo all of that work for you.
Clean account conduct
Before a lender approves a mortgage, they will inspect your bank statements. If they see dishonoured direct debits or unarranged overdrafts you could be declined. These things make you look risky and hints that you cannot manage your finances well.
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