Just a little bit of good news – nothing earth shattering, but any good news is always welcome !

For clients looking to buy investment property  , the required deposit is going to reduce from 40% down to 35% (excl New Builds for investment , which are exempt from LVR rules anyway).

For Low deposit buyers – banks will now be able to utilise 15% of their new lending to clients with a deposit of less than 20%. Currently the banks are only able to use 10% of their funds for this.

So, they will have more money to lend to low deposit buyers.

So, as I say, nothing life changing in itself, but when you factor in that the banks are almost literally falling over themselves to lend money, at least their lending ability  is getting just that little bit better.

Put in another more blunt way – and without inviting dreamers to step forward – if ever there was a time to have a crack at getting an approval across the line, now’s the time !!

Check out the LVR changes here: https://www.goodreturns.co.nz/article/976521639/unpopular-lvr-rules-to-be-loosened.html

A bit of good news dropped into my inbox yesterday – ANZ (and I also now see another big bank has followed) – has lowered its 3 year Fixed rate down to 5.99% , for borrowers with 20% or more equity.

Given that rates are very unlikely to plummet given the Reserve Bank’s efforts to control inflation, it is at least heartening to see that people can now approach the mortgage market with much more confidence than what the typical 12 month fixed rate specials offer.

Essentially people no longer have to live in fear of where rates might go up to, and they can at least depend upon a reasonably decent rate for 3 years.

Anything that helps remove a little fear, and restores a bit of comfort,  is ultimately good news for us, too.

And, dare I say it, it may even gently encourage a few property investors as well, with the ability now to do their sums for 3 years, 5.99%, Interest Only  ($115 per week, per every $100K borrowed).

Every little bit helps … and if anyone is looking for any further information / reassurance / number crunching – just give me a call.

Stu