The Property Newsletter

April 23, 2019

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Falling interest rates have reduced mortgage payments for first home buyers so much that Auckland is on the verge of being considered affordable again.

David Chaston examines mortgage trends and finds that the number of mortgages being taken out by first home buyers has been increasing, Westpac economists suggest that if the Reserve Bank doesn't cut the OCR next month, there may be no cut at all for the rest of the year, and non-bank lenders see opportunities to grow their mortgage business in this country.



Headlines

Auckland is on the cusp of being affordable for first home buyers

Even though lower quartile house prices remain at or near record highs, falling interest rates have come to the rescue of first home buyers

Interest.co.nz’s latest Home Loan Affordability Reports show the average of the two year fixed mortgage rates offered by the major banks in March was 4.02%, the lowest it has been since interest.co.nz began compiling the data in January 2002. The peak during that period was 9.64% in March 2008.more>>
Are mortgages getting bigger?

David Chaston looks at the changes in average loan size for new lending for first home buyers, owner occupiers, and housing investors to try and locate the stress points

Over all of 2017, the total volume of loans to first home buyers decreased. From 2018 onward they have been increasing.more>>
OCR-cut door may close quickly

Westpac economists say if the Reserve Bank doesn't cut interest rates in May there may be no cut at all over the rest of the calendar year

It could be May or nothing for a cut to the Official Cash Rate this year by the Reserve Bank, according to Westpac economists.more>>
Non-banks see mortgage opportunity through RBNZ capital proposals

Reserve Bank proposals to increase bank capital requirements seen creating residential mortgage market opportunity for non-bank lenders

Andrew Marsden, general manager of treasury and securitisation at Resimac, told interest.co.nz the Reserve Bank proposals could "absolutely" increase Resimac's opportunity in the New Zealand home loan market.more>>

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