While many will be singing in the new year with the usual festivities and celebrations, at SuperCity we’ll also be toasting to a small but significant change to the current LVR Restrictions.
From 1 January 2018 The Reserve Bank has announced that it would lift its ‘speed limit’ on high LVR lending (over 80%) for owner occupiers from 10% of new lending to 15% of new lending. It also eased the deposit requirement for high LVR lending for rental property investors to 35% from 40% and has left its high LVR speed limit for rental property investors at 5% of new lending.
Governor Grant Spencer is not expecting major changes as a result of these announcements and rejects any criticism that such changes should have been made earlier.
‘We certainly don’t want to give the signal that it is some sort of green light that the housing market is back on,’ Spencer said.
‘The signal is more that our expectation is that the housing market is going to remain flat and is not about to resurge again, but there is a little bit more room for high LVR loans, and a lot of that would be taken by first home buyers.’
Grant Spencer goes on further to comment on overall housing risk and a potential downturn in the housing market (regular feature in the papers!).
‘In terms of a risk of a downward correction, we think that is a low probability because of the underlying housing shortage that we think still persists, particularly in Auckland.’
From our point of view at SuperCity we welcome the changes. We know of several banks getting nowhere near their 10% high LVR lending for homebuyers and it’s a space where demand has outstripped supply the past couple of years. Hopefully, this change will make it easier for 1st Home Buyers to obtain bank pre-approvals as opposed to banks only looking at ‘live deals.’
If you were previously holding off looking at an investment property due to the LVR restrictions we welcome the opportunity to review your equity position and see whether you qualify after this change.
We’re proud to announce that SuperCity Mortgages & Insurance is now a sponsor and active supporter of Paw Justice – and thanks for your support in this great cause!
We’ll continue to make healthy donations on your behalf for any referral made for mortgage or personal insurance assistance. Your friends existing mortgages qualify too! We will offer free structure advice and let them know if we can save them money on their interest rates. We will serve your referrals with free independent advice and help animals in need at the same time!
Paw Justice was formed in 2009 to help deal with the sickening problem of animal cruelty and neglect against pets in New Zealand. What began with a reactive start to animal abuse issues, has now evolved through committees and legal advice into a very proactive charity helping animals and shelters throughout the country.
Paw Justice receives no government funding, so your donations help fund their Food Bank and Pet Rescue programme which has delivered over 300 tonnes of pet food, treats and supplies to animals in need and is
helping over 70 pet rescue shelters around the country re-home abandoned animals.
‘Saving one dog won’t change the world, but for that one dog its world has changed forever’
Preferential car finance rates now available.
For anyone looking to buy a new car or refinance an existing car loan, SuperCity clients are able to access preferential automotive loan rates, with benefits including:
Typical rates of between 9.95% and 10.95% on car loans (compared to standard rates of between 13% and 17%).
No monthly account or administration fees (often $5 to $10).
No fee for additional payments (up to $375 with other finance options).
No early termination admin fees (can be as high as $350).
An establishment fee of $250, compared to a market average of $700.
This offer is available on both dealer and private sale transactions, and it’s the result of partnership with Simplify who work with Marac Finance and BMW Finance. If you’re interested in refinancing your existing car loan to a lower rate or borrowing for a new car, give me a call or email and I can quickly get this in place for you.
Merry Christmas and have a safe and happy start to the New Year.
As Christmas is upon us, we find ourselves reflecting on the past year and on those who have helped to shape our business in a most significant way. We value our relationship with you and look forward to working together with you in the years to come.
It’s a great time to sit down with your friends and family and think about your financial goals for the year – and for the long-term. Where do you want to be in five or 10 years? Can you reduce debt more aggressively or are you ready to expand your portfolio? Whatever your plans for 2018, I am here for you.
In the meantime, have a wonderful Christmas and enjoy the sunshine. Relax and rejuvenate, stay safe, and let’s be refreshed and ready for another incredible year ahead.
Merry Christmas from the whole team at SuperCity Mortgages and Insurance.