Home Loans in New Zealand: What You Need to Know

Fresh from a 12-day adventure in Japan, mortgage expert Khouanchai returns to discuss New Zealand's economic landscape with a focus on the housing market. We kick off with travel tales – navigating Japan's epic train systems and comparing living costs between Japan and New Zealand – before diving into the financial matters that concern Kiwi homeowners.

The Reserve Bank's recent decision to hold the Official Cash Rate at 3.25% signals their cautious approach to balancing inflation concerns with economic growth. What does this mean for your mortgage? With competitive rates still available – one-year terms at 4.85%, three-year terms at 4.99%, and special first-home buyer rates as low as 4.29% – there's room for strategic planning. We share insights on whether to fix or float your mortgage in the current climate, with an emphasis on personalised advice rather than crystal ball predictions.

Perhaps most sobering is our discussion on property value decreases, with the Lower Hutt region experiencing a staggering 20% drop. We share a personal account of facing a 14% value decline between purchase and settlement, exploring the challenges this creates for buyers without additional equity sources. The conversation highlights a reality many Kiwis face: potential settlement shortfalls that can reach hundreds of thousands of dollars.

Our conversation wraps with reflections on the human side of mortgage lending. Unlike traditional banking environments, we value building meaningful client relationships that allow us to understand families' complete financial pictures and provide guidance through life's unexpected turns. If you're navigating property purchases or refinancing in today's changing market, connect with a mortgage advisor who can help you prepare for challenges and identify opportunities amid the uncertainty.

Send us a text

Support the show

Buy your first home in NZ Weekly Webinars

You thought it's not possible or the dream is too far away? Come to my webinar and I will show you, you are much closer to your dream, than you think you are!

Join Here - https://bit.ly/4m9SL72