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Private sales, also known as a private treaty, offer a unique opportunity to buy directly from the property owner.
While this approach can potentially save you money, it also comes with its own set of challenges, especially when it comes to securing your
financing.
I answered the phone last week with an excitable business development manager of a non-bank lender on the other end who knew that we deal a lot with property investors and who wanted to let us know their latest mortgage updates...
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As a mortgage adviser, I’ve witnessed firsthand how strategic mortgage refinancing can create significant financial opportunities for
homeowners.
With the Official Cash Rate (OCR) now at 3.75% and showing a downward trend, many people are wondering if now is the right time to
refinance.
Understanding the process of going unconditional on a property is an important step in the journey of home ownership or property
investment. This milestone signifies your commitment to the purchase, but it also requires careful financial readiness.
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As a first home buyer, you're probably aware that you can use your KiwiSaver to help with your deposit. But how do you actually get that money out in time? In this week’s update, we’ll break it down step-by-step to ensure you're not caught short when it's time to pay your deposit.
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If you’re considering taking your first step into property investment, 2025 presents a unique opportunity that shouldn’t be overlooked. In this article, we’ll check out why the New Zealand property market is ripe for investment and how you can navigate this exciting journey.
There’s a common belief among homeowners that paying your 30-year principal and interest mortgage weekly instead of monthly will help you pay it off faster. While this idea has some merit in certain cases, the reality is that the timing of your payments alone doesn’t inherently accelerate your mortgage repayment. Let’s unpack why...
With first-home buyers now making up 26.1% of NZ’s property market - the highest ever recorded - 2025 could be your year to make the move.
In this week’s update, we will give you our Top 10 Tips for what's happening with mortgages and house-buying, so you’re armed with
everything you need to know if you're planning to step onto the property ladder this year.
Depending on the bank and the purpose of your lending (i.e. owner occupied or investment property), pre-approvals for finance can have
different expiry timelines.
Most pre-approvals expire after 60-90 days and that can go by fast.
This is where you really need to be proactive with your house hunting once you get your pre-approval in place. You’re not always going to
purchase the first property you see, so it can be a very time consuming process.
As a first home buyer, you're probably aware that you can use your KiwiSaver to help with your deposit.
But how do you actually get that money out in time?
In this week’s update, we’ll break it down step-by-step to ensure you're not caught short when it's time to pay your deposit.
Buying a home is a major financial commitment, and one of the first steps you should take is to get pre-approved for a mortgage. Pre-approval is a process where a lender assesses your financial situation and determines how much money they are willing to lend you for a home purchase. In this week's update, we will explore why it’s a good idea to be pre-approved before you go house shopping, and what you will need in order to secure a pre-approved home loan.
As a first home buyer, attending an auction can be an overwhelming experience. With so much pressure to make the right decisions, it's easy
to get caught up in the excitement and lose sight of your goals.
However, with careful planning and preparation, buying your first home at auction can be a rewarding and successful experience.
When it comes to securing a home loan, many borrowers are faced with the decision of whether to approach a bank directly or enlist the
services of a Mortgage Adviser.
Both options have their advantages and understanding the role of a Mortgage Adviser and the potential costs involved is essential in making
an informed decision...
The number of New Zealanders transitioning from low fixed rates over the next few months is expected to create more financial pressure on
households.
While seeking ways to offset this impact, taking a "mortgage holiday" may seem tempting, but in reality it should be seen as a last resort
if you’re facing financial hardship...
As Mortgage Advisers, we often get asked by homeowners about clever ways to save money on their mortgages. One powerful tool that's gaining popularity is the Offset Facility. So in this week's update we will explore how this nifty feature can help you reduce your mortgage payments and potentially save thousands over the life of your loan.
Break fees, also referred to as early repayment adjustments, are costs charged to borrowers when they repay or adjust their loan before the
end of the agreed fixed term.
Lenders impose these fees to compensate for the potential loss of interest they would have earned if the mortgage had continued as initially
agreed.
Break fees commonly arise when refinancing, selling a home, or paying off a mortgage early.
Whether you're looking to reduce your monthly payments, or access your home's equity, refinancing your mortgage can help to achieve your financial goals and possibly add a bit of cash to your pocket through the many incentives banks use to attract new customers.
Imagine stumbling upon your dream house, but you still own your current property.
What should you do?
Luckily, there are a couple of potential options to consider:
Typically people think of a Non-Bank lender or second-tier lender for those that have a bad credit history or those who are self-employed
and not able to verify their income.
But as the major banks are still a bit sheepish when it comes to those borderline applications, Non-Banks are stepping in to fill the void.
When it comes to investing in properties, many individuals find themselves faced with a common dilemma: should they secure multiple properties with the same bank or spread their investments across different lenders?
While refixing offers the comfort of staying with your current lender, refinancing could present opportunities for better interest rates, a
more suitable loan structure and even a substantial cash back.
So if it's time to refix your home loan, you might want to stop and take a look at all the options...
If you're thinking about buying a new home but still need to sell your old one, bridging finance can be your financial lifeline.
“They should be saying they were completely and utterly wrong,” is how top economist and Infometrics Chief Economist Brad Olsen has described the Reserve Bank going from stating that there was 60% chance of a future OCR hike at their review in May to a 25-basis point cut (0.25%) on the 14th of August.
Cashback offers are financial incentives provided by banks to attract new mortgage customers.
Essentially, when you take out a new home loan, the bank rewards you with a lump-sum payment...
Investing in real estate has long been a popular strategy for wealth creation here in NZ, but over the past few years there has been little
to no mortgage lending in the property investor space.
This is due to the tax deductibility changes which came into effect in 2021, along with interest rate increases and strict LVR requirements.
Refinancing a home loan means replacing your current mortgage with a new one, typically to benefit from better terms or rates.
Homeowners might consider this option for several reasons...
As expected, the Official Cash Rate stayed at 5.50% when the Reserve Bank completed its latest review last Wednesday. We have just ticked over...
In many cases we’re seeing developers complete projects with multiple properties which they intended to sell, but due to the current property market conditions they’re unable to either sell at the...
In our latest webinar in April, Kris and Cameron discussed several topics relating to the property market, and overall economy including...
A week ago, our Reserve Bank (RBNZ) made the only call they were ever going to and kept the Official Cash Rate (OCR) at 5.5% where it has been since May last year. Accompanying it was almost no....
With all of the commentary around interest rates and potential debt-to-income restrictions in the current mortgage market, it's worth mentioning that there are a few positives for both first home buyers and also investors...
At the end of January, the Reserve Bank announced that they had launched a consultation to activate debt to income (DTI) restrictions which are based around loan affordability and....
By the time you are reading this the Reserve Bank will have passed its decision on the first Official Cash Rate review of 2024, and I expect that they would have made the call to....
Kris writes... "I am pretty negative on the economy especially for the first half of the year and expect that many a business which relies on..."
ARTICLE - Coalition Government Tax Changes: Matthew Gilligan looks at the changes to tax and tenancy rules announced today. In particular, GRA celebrates the reversal of the interest non-deduction rules.
As we head towards the end of the year, it is a good chance to reflect on what has been a turbulent time over the past six years...
The end of the year 2023 is getting closer and we are talking to many clients who are looking for ways to make the most out of their current situation and achieve their financial goals in 2024.
An (in my humble opinion) much needed change of Government, an all-time classic win for the All Black’s and some great news today that the inflation monster is being tamed and rates have...
Often many people aren’t aware that at KPM we also can assist with Business Lending (buying into a business, buying an established (existing) business, or even buying something new (a franchise).
Last Wednesday (the 4th of October) the Reserve Bank held the official Cash Rate which is now the third time they have hit the pause button since...
Buying your first-home is difficult, but the good news is that some banks are making it a bit easier.
In Kris's recent blog post he discusses how China's economy can affect NZ...
If we look just at New Zealand, it appears we could be in for further interest rate increases. Immigration is continuing to be stronger than expected although a lot of Kiwi’s are also leaving these shores as well. Most economists are now...
Steve Munro is the Director of Risk Direct Insurance. He writes; "In light of a recent article published on Good Returns, I feel compelled to emphasise the significance of truly grasping the details of your insurance policy."
Kris writes... I had the chance to speak alongside David Faulkner, GM of Property Management at Property Brokers, at several events across
the country recently.
It’s evident that property investors are becoming more optimistic.
David Faulkner is the General Manager of Property Management at Property Brokers. Property Brokers is the New Zealand's third-largest landlord.
David writes...
Here are some facts about mortgages that you may not be aware of!
We've recently had a few banks raise their fixed interest rates, what does this mean for you as a borrower.
Just when it looked like we had hit the top of the interest rate cycle there have been some signs suggesting that we may not be there yet. The Reserve Bank has indicated that they still believe that the job has been done...
We've recently partnered up with Initio, who offer Home, Car, Contents and Landlord insurance. They've recently written a blog article about some of the challenges landlords face when it comes to property damage in NZ.
No matter what business you are in (self-employed, salaried, or retired), health insurance should be part of your risk mitigation strategy.
We spend a lot of our time encouraging both existing, and potential clients to review their mortgages. This week we've seen yet another example of why taking this advice could be so worthwhile for your back-pocket.
If you've added up your total deposit, and it simply isn't enough to get you the property you want, OR it leaves you with a loan that is too high to meet repayments you're comfortable with - there may be other options avaliable for you with Kainga Ora's First Home Partner scheme.
As expected the Reserve Bank held the Official Cash Rate at 5.50% yesterday. This marks the first time in almost 2 years that they will not
have hiked with a staggering 525 basis point increase over that time.
Recent commentary from...
If you’re looking at purchasing your first home, using your KiwiSaver investment is a fantastic way to get a head start toward your deposit.
If you find yourself with less than the standard 20% deposit requirement to buy your first home, and are also struggling to figure out how/why things are different in this space when it comes to the banks - you're not alone!
A question we often get asked as brokers is how bank servicing criteria differs to what you may be looking at in your own budgeting & forecasts...
Lots of our clients are asking GRA what is on offer from the various parties for the 2023 election, so I thought it would be useful to recap the tax changes made by Labour in their past two terms, and then canvas the different offerings from political parties to reverse their changes...
Whether you are a businessperson signing contracts and leases in the ordinary course of business, a property investor signing finance agreements with banks, a property trader, or a developer, you will no doubt want to pay as little tax as legally required and protect the assets you’ve worked so hard to attain.
Ryan, Eddy and I have been reviewing a lot of client’s mortgage positions lately. Clients’ reasons have varied from being very concerned about cashflow to wanting to know how large their borrowing power is as they plan to go on a buying spree.
Unfortunately, we don’t appear to have hit the top of the interest rate cycle yet. Economists were predicting the inflation (CPI) numbers to come in at 1.5-1.8% for the September quarter. The numbers have come out today at a much higher 2.2%
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With the difficulty over the last 12 months in passing lenders’ affordability requirements many buy and hold property investors have been looking for answers so they can continue to buy and hold.
An “Offset” account is a savings account which is attached to your Home Loan Account.
Recently we’ve had many clients in situations where they have been asking whether or not they should break and re-fix their existing fixed rates. Generally speaking for those clients with quite a long fixed-rate period left, in many cases it doesn’t make sense.
On the 13th July the Reserve Bank (RBNZ) has reviewed our Official Cash Rate (OCR) and has increased it by another 0.50% from 2.0% to 2.5%. The OCR has been our primary monetary policy tool in NZ to assist the RBNZ in meeting their mandate to control inflation, which is currently significantly higher than their targeted 1-3%.
On the 7th July 2022 there were some amendments to the CCCFA changes that initially took place on 1 December 2021.
In early April, there were many discussions following the interest rate market. The OCR was increased by 0.50%, which has NZ currently sitting at 1.50% (to note: this is the first time in over 2 decades, where the OCR was increased by more than 0.25% in one review).
We’ve recently worked with clients who were starting a family and as a result, they were looking at purchasing their first home to set up a stable foundation for their kids, rather than renting.
Level 4 Lockdown – it’s been over a year since we’ve been here, and I don’t think any of us expected to be back here in a hurry! We definitely took our freedoms for granted!
I was recently reading an article about Susan St John and Terry Baucher’s latest call for a harder taxation regime for all residential property in New Zealand. (Yes, harder than the myriad of changes we have already had.)
Our deal of the month is one we are really excited about - as we love seeing our property investors succeed!
One of the frustrating changes as an investor over the last few years has been how hard it is to access revolving credit facilities if you don’t have a specific property purchase in mind. Banks have practically made giving away your first born as part of the criteria and with great deals not sitting around for long having access to the ability to move quick is a great asset to have.
It’s very common for us to recommend to our clients that they review their financial position regularly, which helps them stay informed of market changes and how these may apply to their own personal situation.
In the current low interest rate environment, we’re seeing a lot of clients look at repaying debt quite aggressively (paying above the minimum or making ‘additional’ payments to their mortgage on a regular basis).
Now that we have had time to reflect on the impact of these announcements, we thought you would appreciate our view on things going forward.
As part of the Government’s property policy announcements today (23 March 2021), there are two significant changes to tax rules that will impact residential property investors.
If you are living in NZ right now, you are very likely to be aware of what is happening in the property market, with auction clearance rates up, and property prices rising at rapid rates.
A client came to us to see if we were able to provide alternatives to the situation she was in with her bank. She had tied everything together with one bank and had circa $3m of lending against 5 properties, including her own home.
This month’s article is a continuation of last month’s on associated persons “traps”. Last month I highlighted two traps that can catch the unwary when moving property between associated entities. This month I have another two traps that readers should be aware of.
This blog is Part 1 of 2 on traps that arise when land transactions involve “associated persons”. By way of background, both the Income Tax Act and the Goods and Services Tax Act have definitions of associated persons and special rules that apply to transactions between associates.
