The news isn't all bad for prospective first home buyers.
The Reserve Bank has confirmed major changes to mortgage rules from July, which will prevent most owner-occupiers from borrowing more than six times their pre-tax income.
It's also signaling it will keep the Official Cash Rate unchanged at 5.5% for the rest of the year.
Key Mortgages broker Jeremy Andrews told Mike Hosking that at the same time, the Reserve Bank is loosening LVR restrictions to allow for more low-deposit lending.
He says the changes could actually help many first home buyers.
Westpac may cut trail commissions, risking ongoing client support and advice. Key Mortgages delivers 10 years of trusted, ongoing mortgage advice without extra fees.
Couple’s complaint over costly break fees after fixing five-year mortgage at 6.29%–6.66% rejected.
Key Mortgages suggests keeping up higher repayments following fixed mortgage rate to currently 4.49%. Repayments over a 20 year term are now similar to what peak market rates payments were over a 30-year loan term.
Jeremy chats with Andrew from NewsTalk ZB about OCR drops affecting mortgage market, turnaround times, and increasing demand.
Key Mortgages shares detail on how credit rating scores can impact your ability to borrow. Talk to us for more information on how to put your best foot forward with main banks
Kāinga Ora loan premium rises to 1.2% post July; Key Mortgages’ Jeremy Andrews says it’s still a good option for many first home buyers
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