Fertile Fields in a Mortgage Landscape
It’s been hard to miss all the current stories and discussion in the media about the record low-interest rates globally and in New Zealand. Unless you’ve been living off the grid in the mountains, on a space shuttle to Mars or in the middle of the Pacific Ocean on a sailboat, interest rates continue to create a stir and even in those far-flung areas, the news is sure to have reached you. However, if you live, or want to live somewhere more conventional – in a residential home resting on your own piece of dirt, for example, then these historically low-interest rates are certainly very favourable.
In September 2019, The Reserve Bank left the OCR unchanged at its record low of 1% as predicted. Industry analysts and policymakers assert that this leaves room for more fiscal and monetary stimulus for the economy, to keep inflation in check and for the government to achieve employment goals. The door is open for further easing if need be, but all the indications are that there’s never been a better time to get a mortgage and buy a home. New Zealand’s interest rates, in line with those globally, are expected to stay low in the long term.
What Does This Mean for Home Buyers and Homeowners?
For most, your home purchase is likely to be the biggest financial commitment you make in your lifetime. If you need to secure a mortgage to make it happen, Fundmaster have an expert team of mortgage brokers to help you negotiate the optimum mortgage rate from a large range of lenders – including your own bank - so you can be debt-free faster. We are committed to delivering outstanding service to our customers as evidenced by our winning the prestigious NZSG Home Loan Adviser of the Year in both 2017 and 2018.
The question of whether the current low interest rates make this a good time to jump are entirely contingent on what your current circumstances are. If you are in the market to purchase a home, particularly as a first home buyer, rates starting as low as 3.5% – 3.55% are going to leave more money in your pocket so you can allocate more of your income to pay your mortgage off sooner. At Fundmaster, our mortgage brokers will meet with you and evaluate your entire financial position so that we can source the right loan and the lowest rates possible with terms that are suited to your circumstances and future goals.
Should I Wait to Get on the Property Ladder?
The question that first home buyers will be asking is whether to “wait and see” or move now and take advantage of these historically low rates. Your first port of call, before you even go through your first open home, should be to discuss your concerns, questions and the facts of your finances with a Fundmaster mortgage broker. Many first home buyers are entering the property market with a low deposit of 10% equity or even less. For higher equity borrowing of 20% or more you will have banks competing for your mortgage.
For low equity borrowing, you may find, now that the banks tightening up on their approval for lending criteria, that you are actually competing for a loan with other low deposit borrowers like yourselves. A broker will give you the edge when dealing with the various lenders to ensure that you understand the offerings and are able to compare “apples with apples”.
If you are assuming that you may not qualify or be able to secure a home loan, then there has never been a better time to conquer your doubts, talk to a Fundmaster mortgage broker and make your home ownership dream a reality. An expert Fundmaster broker will guide you and advise you on how to ensure you are in the best possible position to get your home mortgage over the line on terms that are best for you.
How to Get the Banks to Say “Yes” to your Next Address
There are two primary reasons why a mortgage will be declined. The first is poor credit and the second, a high debt to income ratio - is one you can start planning to mitigate well ahead of your application. Although the interest rates are at an all-time low, the banks will be looking closely at your capacity to service the debt so it makes sense to ensure your spending is under control and you have budgeted to take any increases in cost of living or interest rate rises.
At Fundmaster we will show you how to get your ducks in a row and start the process so that on the day we submit your application you know that you have done all the right things to make that longed-for home yours.
Start with a Great Mortgage Adviser and Secure the Best Deal with Fundmaster
Our algorithmic calculators are a handy mortgage solution tool to work out where you are at so enter in your numbers and let’s start the ball rolling. Our mortgage advisers offer mortgage solutions backed up by years of experience, a depth of banking knowledge and a long and highly-respected reputation in the mortgage-broking industry. Call us or complete your details and let’s connect to make the most of the current low interest mortgage landscape today.