Interest.co.nz reports that Kiwibank, ANZ, and ASB have lowered their mortgage serviceability test rates following the Reserve Bank’s recent 50 basis point cut to the Official Cash Rate (OCR). This move increases borrowing capacity for home loan applicants. Kiwibank reduced its test rate from 7.5% to 7%, while ANZ and ASB lowered theirs to 7.25% and 7.3%, respectively.
Mortgage advisor Jeremy Andrews described these reductions as “quite significant,” noting that test rates were over 9% in 2023. However, debt-to-income (DTI) limits remain a constraint for some borrowers. Other banks, including BNZ, have yet to adjust their rates, while Westpac, TSB, and SBS have not disclosed their positions.
NZ Banks are offering cash incentives to retain existing home loan clients. Jeremy of Key Mortgages summarizes with NZ Herald, whether to switch or stay depends on factors like break fees, equity, and overall costs. We can help and negotiate with your current bank to find which is the smarter move.
Key Mortgages recently joined Ryan Bridge on Newstalk ZB, to discuss the recent jump in mortgage rates and what it means for Kiwi borrowers.
Key Mortgages shares details with Good Returns how expanded low-deposit lending options may help eligible first home buyers enter the market sooner and with better pricing
As featured in Stuff, buying property with friends or family can improve affordability, but clear agreements and proper structure are essential.
Banks and Mortgages advisers discuss with New Zealand Herald, why home loan approvals may take longer as lenders apply more detailed affordability checks and tighter financial assessments.
In our recent discussion with Radio New Zealand, we shared that age alone doesn't prevent home loan approval, but lenders carefully assess retirement income and long-term repayment plans.
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