The Week That Was - Week Ending 17th September 2021

So the past week hasn’t really been the bearer of good news unfortunately, with a number of changes that have been brewing for quite some time starting to be introduced. However, we are now in Spring, and we’re (sorry Auckland) out of Level 4, and starting to be able to get out and about again, so it’s not all bad in the world. But lets take a look at some key things that have happened in the past 7 days

News this week.

• One of the Major Banks have increased their servicing requirements for over 80% LVR lending (mostly impacts First Home Buyers), which in short means that it’s tougher to borrow money for a home loan today with this bank, than it was yesterday. This is the result of the RBNZ’s new speed limits imposed on the banks & impacts their ability to lend to those without a 20% deposit, which is set to come into play October 1. We may very well see similar changes in policy from other lenders in the coming weeks.

• Banks are starting to make changes to their assessments with new CCCFA regulations coming into play December 1st (Originally October 1), which in short means a few more checklists for buyers, and expenses will be more heavily scrutinised by the lenders. For people buying an owner occupied home, to give a brief understanding, if you’re looking at buying a new home, keeping your spending in check is going to be very important to the success of securing loan approval.

• Another major lender has reduced the scaling for rental income, to allow for the changes to taxation for investment property, with some already having moved, and likely the rest to follow suit in the coming months. Basically rental income that can be used for loan servicing is reduced with these changes.

Interest Rates

Some more bad news here unfortunately, with 3 of the 4 biggest lenders in New Zealand increasing rates this week. TSB, SBS & KiwiBank have also raised their rates. Full overview of interest rates here: https://www.interest.co.nz/index.php/borrowing

• ANZ has increased their 12, 18, 24 & 36 month special interest rates to 2.60%, 2.85%, 2.99% & 3.40% respectively
• ASB have increased their 6, 12, 18, & 24 month interest rates to 3.55%, 2.85%, 3.09% & 3.25% respectively
• Westpac have increased their 12, 18 & 24 month special interest rates to 2.85% 3.09% & 3.25% respectively

What’s on the Market in Tauranga

• There continues to be fewer houses for sale in Tauranga, with around a 9% reductions in listings since late July. Currently, there are 451 properties for sale on TradeMe in the Tauranga Region. 196 properties for sale currently are on the Beach Side of the bridge, and 255 on the city side.
• 28 of these properties are vacant land
• 72 of these appear in a search range up to $650,000, however it's important to note a number of these are sections, and dwelling builds.

House of the week

I love renovating, and this one pulls at those strings. Looks to be some good bones with brick cladding, and certainly a lot of scope here to get some work done. Could be a lockdown boredom buster, if you can get to mitre 10 quick enough!