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Potential home buyers urged to consult mortgage advisers

Tenants should be consulting mortgage advisers in an effort to buy a house as rents skyrocket, says Tim Kearins, Century 21 New Zealand owner.

Friday, June 23rd 2023, 9:19AM

He says many tenants might be surprised at what can be available with the help of mortgage advisers who can provide information on government schemes and pulling resources together.

His comments come after Trade Me Property revealed Auckland is now the most expensive region in the country to rent, after the median weekly asking price rose to $660 in May - up 10% in just 12 months. At the same time, nationwide, median weekly asking rents are up to a record high of $610, meaning tenants are paying an extra $35 a week or $1,820 more a year than in 2022.

“It appears that after large pay increases in many industries throughout last year, landlords are still feeling confident to ask for more, says Gavin Lloyd, Trade Me’s property sales director.

But he expects rents to taper off later in the year as landlords respond to stalling wages and tenants’ lack of disposable income. “Until then, renters' wallets will feel the pain,” he says.

Kearins says given the sky-high rents and the buying opportunities, flatmates, friends and family members should also look into collectively pulling a deposit together and convincing a mortgage adviser or bank of their ability to service,” Kearins says.

“First-home buyers struggling to get over the line, should also consider a tenant to help their bankability.

The Reserve Bank’s recent easing of the Loan-To-Value Ratio (LVR) restrictions is also helping more first-home buyers (FHBs), not to mention that vendors are getting more realistic on their price expectations. The Reserve Bank has also indicated that future rises to the Official Cash Rate (OCR) are not expected.

First home buyers remain a solid presence in the property market, with a 24-25% share of purchases over the first quarter of this year, and now into April and May.

To be fair, says CoreLogic chief economist Kelvin Davidson, the number of FHB purchases is still quite low, but reduced competition from other buyer groups still means finance-approved FHBs are enjoying conditions at present.

Kearins says coming up with a sufficient deposit is often the biggest hurdle for tenants who want to become buyers, but there is help available through the Government’s first-home buyer assistance. Schemes include First Home Grants, First Home Loans, and First Home Partner.

First Home Partner is a shared ownership scheme helping first-home buyers buy a home together with Kāinga Ora. First Home Grants give eligible first-home buyers up to $20,000 for a deposit, while First Home Loans allow eligible buyers to buy a home with a 5% deposit.

Century 21 financial managing director Julius Capilitan says potential buyers should not believe the urban myth that it’s impossible to get finance. We’re still seeing plenty of approvals from banks and plenty of happy customers,” he says.

He says this winter is a good time for Kiwis to get on the property ladder. “Talk to a mortgage adviser or get on a bank’s mortgage calculator to see what’s possible, and most importantly, homeownership is now in closer reach for many.”

Kearins says it still remains a great way to help people’s long-term security and standard of living.

Tags: Mortgage Advisers

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Lender Flt 1yr 2yr 3yr
AIA - Back My Build 6.19 - - -
AIA - Go Home Loans 8.74 7.14 6.75 ▼6.39
ANZ 8.64 7.74 7.39 7.25
ANZ Blueprint to Build 7.39 - - -
ANZ Good Energy - - - 1.00
ANZ Special - 7.14 6.79 6.65
ASB Bank 8.64 7.14 6.75 ▼6.39
ASB Better Homes Top Up - - - 1.00
Avanti Finance 9.15 - - -
Basecorp Finance 9.60 - - -
Bluestone 9.24 - - -
Lender Flt 1yr 2yr 3yr
BNZ - Classic - 7.14 6.79 6.65
BNZ - Green Home Loan top-ups - - - 1.00
BNZ - Mortgage One 8.69 - - -
BNZ - Rapid Repay 8.69 - - -
BNZ - Std, FlyBuys 8.69 7.74 7.39 7.25
BNZ - TotalMoney 8.69 - - -
CFML Loans 9.45 - - -
China Construction Bank - 7.09 6.75 6.49
China Construction Bank Special - - - -
Co-operative Bank - First Home Special - ▼6.79 - -
Co-operative Bank - Owner Occ 8.40 ▼6.99 6.79 6.65
Lender Flt 1yr 2yr 3yr
Co-operative Bank - Standard 8.40 ▼7.49 7.29 7.15
Credit Union Auckland 7.70 - - -
First Credit Union Special - 7.45 7.35 -
First Credit Union Standard 8.50 7.99 7.85 -
Heartland Bank - Online 7.99 6.89 6.55 6.35
Heartland Bank - Reverse Mortgage - - - -
Heretaunga Building Society 8.90 7.60 7.40 -
HSBC Premier 8.59 - - -
HSBC Premier LVR > 80% - - - -
HSBC Special - - - -
ICBC 7.85 7.05 ▼6.69 6.59
Lender Flt 1yr 2yr 3yr
Kainga Ora 8.64 7.79 7.39 7.25
Kainga Ora - First Home Buyer Special - - - -
Kiwibank 8.50 7.99 7.79 7.55
Kiwibank - Offset 8.50 - - -
Kiwibank Special - 6.99 6.79 6.65
Liberty 8.59 8.69 8.79 8.94
Nelson Building Society 9.00 7.75 7.35 -
Pepper Money Advantage 10.49 - - -
Pepper Money Easy 8.69 - - -
Pepper Money Essential 8.29 - - -
Resimac - LVR < 80% 8.84 8.09 7.59 7.29
Lender Flt 1yr 2yr 3yr
Resimac - LVR < 90% 9.84 9.09 8.59 8.29
Resimac - Specialist Clear (Alt Doc) - - 8.99 -
Resimac - Specialist Clear (Full Doc) - - 9.49 -
SBS Bank 8.74 7.74 7.29 6.59
SBS Bank Special - 7.14 6.69 5.99
SBS Construction lending for FHB - - - -
SBS FirstHome Combo 6.19 6.14 - -
SBS FirstHome Combo - - - -
SBS Unwind reverse equity 9.95 - - -
Select Home Loans 9.24 - - -
TSB Bank 9.44 7.79 7.55 7.45
Lender Flt 1yr 2yr 3yr
TSB Special 8.64 6.99 6.75 6.65
Unity 8.64 6.99 6.79 -
Unity First Home Buyer special - 6.55 6.45 -
Wairarapa Building Society 8.60 6.95 6.85 -
Westpac 8.64 7.89 7.35 7.25
Westpac Choices Everyday 8.74 - - -
Westpac Offset 8.64 - - -
Westpac Special - 7.29 6.75 6.65
Median 8.64 7.21 7.29 6.65

Last updated: 20 May 2024 10:01am

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