Mortgage Deposit Requirement under Review

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happy homebuyer pukekohe

CMIS can get you there

Sensibility is coming to the fore to help new home owners. The Reserve Bank is now seriously deliberating a change to the deposit restrictions of a 20% deposit on house lending. We are of the opinion that by early- mid 2015 these restrictions will be reduced to 10% deposit requirements.

Sales statistics suggest that the property market is only strong in the central Auckland isthmus and Christchurch due to their major rebuild and that land is scarce hence increased pricing due to strong demand. In the outer suburbs of Auckland and remaining NZ sales are steady and prices are stable due to tempered demand and supply curves.  This is evidenced by a quote from Quotable Value  (7 Nov 2014) who made the following statement ” House prices are still on the increase in the hot Auckland market, but the last three months have seen the New Zealand market growth begin to slow with an increase of just 1.1%. The perception of an overall market price increase is being fuelled by Christchurch and Auckland with over 75% of New Zealand house prices remaining flat or declining since the property boom of 2007.”

This is good news if you are a home purchaser outside the hot zones. If you are a potential house buyer in Auckland we suggest you look at the option of purchasing in outer Auckland areas especially around the “Franklin” region where prices are still affordable for a quality home. This area is growing fast with over 4,000 new homes due to be built there in the next 3 to 4 years. Supply of land is good as rezoning keeping prices affordable. With improving train transport into Auckland, great sports facilities, good schools and shopping this makes this option worthy of consideration.

If you are considering purchasing your home and would like to discuss mortgage planning and options on how to buy your home should  your  deposit fall between 10% and the 20% requirement call Jack at CMIS (09 237 0030)  for a free consultation.

Help and advice is just a phone call away.

Category: All Articles, Mortgages

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