Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search


New LVR ratio means buyers need to be better informed

22 August 2013

New LVR ratio means buyers need to be better informed

The New Zealand Reserve Bank’s announcement of new loan-to-value ratio restrictions, which come into effect on October 1, means seeking advice from mortgage advisers has become increasingly important, says General Manager of Mortgage Express, Sarah Johnston.

“The new ratio restrictions will make it more difficult for first home buyers and investors to purchase property. This means it has become even more important for home buyers to consult mortgage advisers, who can provide sound advice on a broad range of options open to purchasers.”

Whereas banks will only advise on whether or not an applicant meets their own criteria, Registered Financial Advisers (RFAs) are able to provide advice across many different lenders and products.

“The new restrictions mean that home buying has now become an affordability issue. It’s not so much about security anymore, but what people can afford. So for example a young couple with great incomes but a low deposit and no security will have to look outside the box to secure a loan,” says Johnston. “It’s really important for people to know what their options are, so we would recommend a comprehensive financial assessment from a registered mortgage adviser.”

Mortgage advisers can review offers from banks as well as discuss alternative loan options, such as caveat lending, parental guarantees and personal loans. They can also provide home buyers with no obligation ‘financial health checks’, advice on re-financing, purchasing investment property and insurance.

About Mortgage Express

Mortgage Express is the fastest growing mortgage and insurance adviser company in Australasia. In operation since 1998, it has access to over 16 lenders, 6 insurers and 200 products, and has helped more than 20,000 New Zealand families buy their dream homes. With 37 advisers across New Zealand, Mortgage Express assists in settling over 2,200 loans annually.

Mortgage Express is owned by Harcourts, New Zealand’s largest real estate group, a privately owned New Zealand company which operates in 10 countries around the globe.


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines



Relevant Consents Gained: Government Unveils RMA Reform Package

The government has formally hauled down the flag on its attempts to alter the balance of environmental and economic priorities in the Resource Management Act, unveiling a 180-page Resource Legislation Amendment Bill containing reforms that have been largely endorsed by most political parties. More>>


Closing Schools And Such: Interim Redcliffs Decision Announced

“While the school’s board has argued that circumstances that could give rise to potential disruption are extremely unlikely, advice from technical experts has shown these concerns cannot be ruled out." More>>


Jane Kelsey: High Court Can’t Make Groser Provide TPPA Information Faster

‘This week we went back to court to challenge Trade Minister Groser’s stalling tactics over the release of information on the Trans-Pacific Partnership Agreement negotiations, following a High Court order that he reconsider the Official Information Act request I made last January’, said University of Auckland law professor Jane Kelsey, first applicant in the case. More>>

Werewolf 58: No Climate For Change

The last time the global community tried to take collective action on climate change the world’s leaders finally came to agree that every not-too-onerous effort should be made to hold global warming to 2°C above the pre-industrial average. At Paris, all 150 participant countries nations will have put forward their pledges... On the information available, New Zealand's is the second weakest contribution of any nation in the developed world. More>>


Lambton Quay Shutdown: Object Was Made To Look Like Bomb

Police cordoned off part of Lambton Quay Wednesday afternoon, saying that a suspicious package had been found. Buildings were evacuated and buses were detoured. The army’s explosive ordnance disposal unit was brought to the Quay. More>>


Public Sector Still Shrinking: Record Low Number Of 'Backroom Bureaucrats'

Ongoing restraint in the public sector and a focus on better frontline services has seen a further reduction in the number of core Government employees, State Services Minister Paula Bennett says. More>>


Disobeying The Law: Police Censorship Of Crime Research “An Outrage”

The Green Party is calling on Police Minister Michael Woodhouse to ensure Police scrap controversial contracts that place onerous restrictions on academic researchers’ access to Police data, the Green Party says. More>>


Get More From Scoop



Search Scoop  
Powered by Vodafone
NZ independent news