As you are no doubt well aware, interest rates are at record lows at the moment and indicators are showing that they are going to go even lower. This certainly helps with mortgage affordability, in particular for first home buyers.
While this is good news, the issue is that there is still a lack of supply of properties on the market for people to purchase! This combination of lack of supply matched with low interest rates are prime factors in the trend of property values continuing to increase.
Due to Covid-19 and the effect that has had on many people’s incomes, banks are being very cautious and making extra checks on whether or not they think you will be able to service a loan. But, don’t fear, if you have certainty of income the banks are still prepared to lend.
Prepare to get into the property market by making sure you have your credit cards and other debts under control. Banks do check! If personal debt is something you are struggling with, we can help you find ways to manage your money and ensure that you are setting yourself up to be in a position to purchase a home.
Sometimes this is as easy as a balance transfer, sometimes it requires a bit of clever thinking and problem solving, and always it requires an understanding of where your money is going. We are big fans of Spending Plans (aka Budgets) – having a better understanding of what you are earning vs spending. That knowledge is going to put you in a stronger position to make positive steps towards your financial goals.
First home buyers – as well as the money in your KiwiSaver, you will also need to show some additional savings. Remember too that you are likely to be able to access free money through a First Home Grant.
If you already own a home and you’re looking to upgrade or purchase an investment property, then reviewing your current lending structure can offer you opportunities to make that next step. There’s always more to the picture than just the interest rate, which is where we come in. Let us help you get the best out of your situation.
Booking an appointment with Elise is now as easy as clicking the Calendly link at the bottom of this page, you can choose whether you want to meet face to face or over Zoom, we can do whatever works for you.
Looking forward to supporting you towards financial freedom!