Property Finance

Government boosts assistance for First Home Buyers using Kiwisaver

1 August 2016

From Monday 1 August 2016, income caps will increase from $80,000 to $85,000 for a single person and from $120,000 to $130,000 for a couple wanting to use the Kiwisaver HomeStart scheme.

The Government is adjusting both the income caps and house price caps to allow first home buyers access to homes in a more realistic price range when using the Kiwisaver scheme.

HomeStart Grant

The HomeStart programme helps first home buyers put together a deposit by granting them up to $10,000 for an existing house and $20,000 for a new home, on a joint basis.

House price caps will increase by […]

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Reserve Bank tightens rules for property investors

21 July 2016

What’s happening?

The Reserve Bank of New Zealand (RBNZ) is tightening the rules for property investors, with a requirement to have a maximum LVR* of 60% nationwide.

The RBNZ has kept the LVR threshold for owner-occupied the same at >80% LVR, but has replaced current regional volume limits (10% Auckland, 15% rest of NZ) with a nationwide limit of 10%.

*LVR is Loan to Value Ratio – it refers to the amount borrowed versus the value of the property.

What is changing and when?

These changes are effective 1 September, but the banks are starting to adopt them now.

All property investor applications will be […]

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Reverse Mortgages

For many New Zealanders, the family home is their most valuable asset. For some people this can mean they are asset rich but cash poor. It is such people who are being targeted in marketing campaigns for reverse mortgages. These mortgages can have serious implications for the home owner. Although they are relatively new in New Zealand, they have been around for many years in the USA and UK.

What is a Reverse Mortgage?
Reverse mortgages (also called reverse annuity mortgages and equity release loans) involve a loan borrowed against the equity in the home owner’s property. […]

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