At last some fantastic news for both home buyers and investors is in the pipeline. As an early Christmas present, the Reserve Bank has just announced it will soon start to ease LVR (loan to value ratio) restrictions gradually as part of the latest Financial Stability Report findings. LVR restrictions were introduced back in 2013 to slow down the housing market, which at that time was careening along at a breakneck pace, causing prices to spiral.
Reserve Bank Governor Adrian Orr says risks to New Zealand’s financial system have eased over the past six months (since the previous Financial Stability Report), but vulnerabilities persist. Households are still particularly exposed when it comes to their large mortgage burden. If interest rates were to rise, then a lot of families could struggle to cope with their level of debt.
“However, both mortgage credit growth and house price inflation have eased to more sustainable rates, reducing the riskiness of banks’ new housing lending,” says Orr.
Further easing expected
“In response, we are easing our LVR restrictions on banks’ new mortgage loans. If banks’ lending standards are maintained, we expect to further ease LVR restrictions over the next few years.”
Currently, LVR rules stipulate that banks can only lend 15% of their total lending to owner-occupiers with a deposit of less than 20%, and 5% of their investor loans to those with a deposit of less than 35%.
New LVR rules:
- Up to 20% (increased from 15%) of new mortgage loans to owner-occupiers can have deposits of less than 20%
- Up to 5% of new mortgage loans to property investors can have deposits of less than 30% (lowered from 35%)
- New rules to take effect from January 2019.
Our financial advisers are all crazy busy right now and this is good news for what has been a relatively flat market situation. There’s lots of houses coming onto the market, amazingly low interest rates, and shortly there will be more lending available from the banks. This is great news for borrowers, especially first-home buyers as banks will have the ability to do more lending in this area with fewer restrictions on deposits. For more information check out https://www.pickaloan.co.uk
So what are you waiting for?
Give us a call today, so we can start the process for you to get all your ducks in a row in time for a great new house early in the New Year.
Plenty of pampering on girls’ Dream Days
One50 Group own charity “One50 Dream Days” has been very busy this month giving two awesome families a deserving day out to remember.
Both families have a special girl in their lives who’s been going through a tough time.
Our candidates Ella & Holly were picked up with an awesome Ferrari and bright pink Land Rover and were taken to One50 Group HQ.
At HQ they met Michelle Isemonger, Miss International Oceania 2017. Michelle took our teens through a pageant workshop were they learnt show choreography and modelling. They were joined by Shortland Street star Rebekah Palmer and got to know more about her career over lunch.
The girls had one more surprise from our favorite jet-setter Logan Dodds who did a presentation about his career choices with social media.
Next up, Fashion Parade where the girls each modelled 4 outfits from StyleStarter accompanied by Rebeka and One50 staff Francesca and Stephanie.
The parade ended with the girls modelling bridal outfits escorted by Logan followed by a photo shoot with Angela Pan.
Both girls and their family had a great day.
Thank you Logan, Lani, Mimi, Michelle & Rebekah
We’re very proud to be able to bring One50 Dream Days to a deserving child or family whose lives are affected by a disability or serious illness.
If you think that you or your business are able to help run one of our Dream Days or offer any goods or services, then please reach out to your One50 Group financial adviser or contact our Dream Day coordinator Liz Munt at email@example.com
Check out our other Dream Days here