New Zealand Guide On Negative Equity

A new guide on Negative Equity is now available for New Zealanders, offering a comprehensive look at the impact of rising interest rates on property owners. The guide explains negative Equity, who is most at risk, and what it means for homeowners.

MoneyHub Head of Research Christopher Walsh comments:

"With the Reserve Bank of New Zealand (RBNZ) raising the Official Cash Rate (OCR) at a rapid pace, many Kiwis are anxious about how these rate rises will impact mortgage rates and whether they'll be able to service these higher mortgage payments. In addition, with no end to rising interest rates, the concept of negative Equity has started to become relevant to New Zealanders".

"Negative equity, also known as having a property that is "underwater", occurs when the value of a property is lower than the outstanding mortgage balance. With property prices expected to continue dropping into the foreseeable future, more Kiwis will end up with underwater properties".

"The guide covers the mechanics of negative Equity, the implications of having negative Equity on a property, and how best to deal with having an underwater property. In addition, it provides must-know facts and answers to frequently asked questions".

"We understand that rising interest rates can be a source of concern for many New Zealanders, especially those with mortgages; that's why we've created this guide on Negative Equity. We want to help Kiwis understand this important issue and take steps to protect their finances."

The guide is live and will be updated as needed – Negative Equity NZ.

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