This month, we’ve seen servicing test rates drop, which has opened up new opportunities for those whose applications might or have been previously declined. Test rates play a crucial role in determining your borrowing power and ability to secure finance.
If you’ve encountered challenges securing finance in the past, please reach out – this change might have reopened doors for your borrowing potential.
As we head into the festive season, it’s important to note that we are already seeing bank processing times getting pushed out longer than usual.
If you’re considering making any property moves over the summer, please get in touch as early as possible so we can kickstart the process for you!
The Reserve Bank made the decision to reduce the Official Cash Rate by 50 basis points, bringing it down from 5.25% to 4.75% – Great news for homeowners and buyers! With the next OCR announcement set for 27th November, many clients are choosing to go onto floating rates, as economist and bank insiders anticipate another potential decrease.
In October, national property values dropped 0.5%, marking eight months of decline and bringing values 5.1% below the February peak. The median property value is now $805,984. Despite this, property values remain 16% above pre-COVID levels.
Regionally, Wellington led declines with a 1.2% drop, followed by Auckland and Hamilton at 0.7%, Dunedin dropped by 0.4%, Tauranga’s values were stable, whilst Christchurch saw a slight 0.2% rise, thanks to affordability and lifestyle appeal.
Although mortgage rates have eased, the impact of job losses is holding back demand, hinting at a possible market stabilisation without a sharp rebound.
Lower interest rates are boosting investors cash flow and confidence as we have seen an increase in investor inquiry. We think there will be a window of opportunity before debt-to income restrictions kick in
We are here to help you navigate the exciting world of finance and property with confidence.
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