NZ 1st homebuyers are ScReWeD...

[Sideshow Bob]

Bob
Bank is BNZ. Rang them today and can do a 'restructure' for
no charge. However, their only lower rate is the 7.99% fixed
for 1 year so there's no point. The 5 yr is 8.89 so still ahead there.
If rates do drop as in the US etc. possibly to 5% or less, then
we will obviously change, they simply post the documents, we sign and
send them back. Perhaps there may be a silver lining on this black
cloud - as long as we can keep working of course. If things get so bad
they have to drop rates (is 1% possible?) there may be a lot of jobs lost
with people unable to pay their mortgage principal, let alone interest.
George

Thanks George. We are with BNZ, although don't know the rules/contract (I wasn't involved in the original mortgage - long story!!). Will check it out.

Looking at the Sunday paper, BNZ appear to be about 0.4-0.5% more than other major banks.


Cheers
SSB

[Dr_Who]

Currently Kiwibank has the best rates and freebies. My bank managers all give me rebate on legal fees and no bank fees charges. Just shop around and negotiate the best rates.

With interest rates coming down and house prices coming back to more realistic levels, people will start to put their money back into properties again.

[minimoke]

Currently Kiwibank has the best rates and freebies. My bank managers all give me rebate on legal fees and no bank fees charges. Just shop around and negotiate the best rates.

Great advice – I’d only add that you need to look carefully at the out clauses. If you are looking for a bit of flexibility it may cost you a bit more. The more business you give your bank the sharper the deal you will get but NEVER give your rental property security mortgage business to the same bank that has your personal home mortgage.

[George]

Any shrewd first home buyers are going to have to have at least a
20% deposit unless they have a higher income than average plus possibly
paying extra costs such as regd valuation, lenders insurance,
application and low equity fees etc.
This underlines my previous opinion that while renting and waiting,
it's crucial to be saving as if one was paying off a hefty mortgage.
So one needs discipline and focus which renting may not always encourage,
while a mortgage certainly does.
George

[Dr_Who]

For 1st home buyers, live with your parents, get free board and food and save up as much capital as possible for your first home. Or ask your parents to lend you your 20% interest free. That's what parents are for.

[Financially dependant]

Houses are only getting cheaper, patients will be rewarded and time to save more of a deposit.

Harcourts figures are already down 30%....

http://www.interest.co.nz/ratesblog/...ready-down-30/

[fungus pudding]

Any shrewd first home buyers are going to have to have at least a
20% deposit unless they have a higher income than average plus possibly
paying extra costs such as regd valuation, lenders insurance,
application and low equity fees etc.
This underlines my previous opinion that while renting and waiting,
it's crucial to be saving as if one was paying off a hefty mortgage.
So one needs discipline and focus which renting may not always encourage,
while a mortgage certainly does.
George

The size of the deposit is far less relevant than affordability. e.g. A 200k property with a 5% deposit may well be more sensible than a 300k property with a 20% deposit. It's impossible to generalise. While renting and waiting, it's crucial to be searcing for a bargain - far more to be gained than by saving which is also important.

[minimoke]

Houses are only getting cheaper, patients will be rewarded and time to save more of a deposit.

Harcourts figures are already down 30%....

http://www.interest.co.nz/ratesblog/...ready-down-30/

Ah the joy of statistics. On one hand you have Harcourts using an average and REINZ using the median. To confuse matters I presume the Harcourt’s sales figures feed into the REINZ figures. Which would then suggest there have to be sales well above average / median to counter the major drag caused by the Harcourt’s figures.

[Dr_Who]

The government valuation in my area reflects an increase in house prices.

[Stranger_Danger]

Yeah and people buy water they can get for free, people on Working For Families don't know they're beneficiaries and people complained more loudly about losing their right to beat their kids than they did about losing access to unrestricted political free speech.

No one ever said everything or everyone was sane.

You believe it cos a piece of paper arrived from the Government telling you which way the wind was blowing 6 months ago?

House prices are falling. My cat could tell you that.