2018: What's happening and how we can help
Welcome to 2018. Here are a few key happenings this year
Late last year changes to the Loan to Value Ratios (LVR’s) were announced, and these have now kicked in. This means we have more funding available for low deposit borrowers, so if you have less than a 20% deposit, it should be easier to borrow for a first home. In terms of investors, the 40% deposit or equity has now been reduced slightly to 35%
Interest rates are still currently at historic lows, however predictions are that rates may start to rise slightly towards the end of the year. For those with a 20% deposit, interest rates are are the 4-5% mark, or creeping into the 5% mark for those wishing to go for a longer term loan. We recommend splitting your loan into various portions, so as to split your interest rates and therefore hedge your risk, with most of the loan being at 2 years fixed.
In the Christchurch market, properties have increased or decreased only 1-2% (depending on suburb) over the past 12 months, so have remained fairly stable. This coupled with the low interest rates and a generally sound economy fueling means it is currently a buyers market, with many good value properties available, which may increase in value in the next few years.
As well as home loans, at Loan Market we also offer personal loans and debt consolidation at a competitive rate. We also offer vehicle finance on new or second hand cars, as well as a wide range of insurances. Some of these include mortgage protection and income protection insurance , health insurance, and life insurance.
We look forward to working with you in 2018. For any queries, contact Simon today! You can contact him via email or by phone, 027 886 4934