Even though the following OCR review is scheduled on February 22, Century 21 New Zealand owner Tim Kearins anticipates more excellent interest rate stability this summer. However, he cautions that this “won’t make it any simpler for many young Kiwis to acquire loans in the first place.”
Kearins believes that the next six months might be an excellent time to purchase a house since the number of listings is increasing and sellers are becoming more realistic about pricing expectations. Even while getting a loan from a conventional bank in New Zealand still has its challenges, he advised not discounting the role of mortgage brokers.
Remember, rents are still expensive, and many people, if they can get preapproved for a mortgage and purchase a home, will feel free to do so. Some say it’s preferable to wait and see whether the market falls more, but that might be a mistake since interest rates could rise substantially by then, making the decision much more expensive.
The Credit Contract and Consumer Finance Act went into effect last summer, causing a severe credit constraint (CCCFA). Although the government has made some adjustments, the central banks still carefully evaluate all potential new borrowers.
Kearins said that potential home purchasers should consider their alternatives. They could be pleasantly pleased by what a mortgage broker can give if they can come up with a down payment and evidence of their capacity to make mortgage payments. New borrowers might ease their financial situation by taking in a roommate or boarder. That extra money can be the deciding factor in whether or not they make it.
The CEO of Century 21 stated that mortgage brokers like Century 21 Financial’s Julius Capilitan (pictured) do all the legwork for their clients, offering better rates and more borrowing options than banks.
Too many Kiwis, Capilitan said, are “exhausted, dejected, and sure that their property dream is dead” because they could not get financing. “It’s fantastic when we can go through their case individually and successfully acquire a specialized mortgage for many of them.”
Since there is now so much price variance, the managing director of Century 21 Financial advised purchasers to do their research.
Capilitan predicted that in 2023 “everything would be great for buying.” There is a market liquidity shortage, making it difficult for first-time homebuyers to acquire low loan-to-value (LTV) transactions since banks have absolutely no appetite for risk. However, entry points into the market are expanding, and brokers are in a prime position to assist with this.
Kinga Ora also suggested that first-time homebuyers on a tight budget look into First Home Partner, a new shared ownership program.
Capilitan said New Zealanders need a strategy to survive the looming mortgage storm.
He said that everyone buying a home should have a clear idea of why they’re buying, how long they want to stay, and whether or not they mind waiting if necessary. They should also have a strategy for paying off their mortgage that has been stress-tested using interest rates more significant than what they are now paying.
