Ray White Now New Zealand - September Edition - Page 12
Major retail banks are now supporting new build applications with lower interest rates which start from 1.68 per cent through ANZ . This loan is a floating rate that offers a discount for two years when building or buying a newly built property . The discount is available in loans to build if you are an owner-occupier or residential investor building a home or purchasing a turnkey property . This is an opportunity that will strengthen the ability for first home buyers to purchase new property and encourage additional property to be built .
The total value of mortgages continues to increase with buyers ’ confidence that prices will continue to rise . The Reserve Bank figures show that from July 2020 , $ 8.818 billion was advanced in mortgages , bringing the total for the last 12 months to over $ 100 billion . There are few comparisons that can be made to the same time last year ; however , the size of the mortgage continues to increase .
The buyer classification for borrowing in July saw owner-occupiers lift their share of borrowing to 64.1 per cent , while there was a slight increase by investors who borrowed $ 1.47 billion and this represented 16.7 per cent of the total mortgages advanced . First-time buyers continue to borrow ; however , their share declined slightly to $ 1.605 billion , seeing this classification has an 18.2 per cent share of all mortgages drawn down .
In summary , there are mixed messages in the marketplace regarding wholesale interest rates that have arisen . While there are expectations from the Reserve Bank that the Official Cash Rate will rise at some stage , it is still expected by the majority of economists to be late this year / early next year . The Reserve Bank is watching the housing market closely , and it is difficult to consider the balancing of the housing market with employment , inflation and other economic factors being important to the overall monetary policy review .
The next monetary policy review is being held on 6 October 2021 . The last change in interest rates was a 0.75 per cent drop in March 2020 , and since that time , the official cash rate has been 0.25 per cent .