When was the last time buying a house in NZ was as affordable as it is right now?

2004.

The combination of record low interest rates, a slight increase in after tax income (you probably didn’t notice that very much!) and soft prices for your typical starter house  all add up to some of the best buying conditions in, well, years!

Banks are keen to win the business of first home buyers with lending ratios going all the way out to 95%, something that disappeared in an instant when the GFC rained down hard in late 2008. Approval criteria are stringent for low deposit loans but make no mistake, if the bank has gone to the trouble of approving your loan they aren’t going to risk losing it to a competitor. This translates into reduced application fees and some really great contributions to legal costs.

From the bank’s point of view, buyers in the Auckland region would have combined incomes of $100,000 plus, low to no consumer debt and genuine savings totalling at least 5% of your proposed purchase price. Many double income couples will be smack bang in the box seat.

As further incentive there are other reports out citing rising rents in Auckland so it’s no wonder people are seriously considering making the transition from tenant to owner.

About Campbell Hastie

Cam is one half of Auckland based mortgage brokers, The Go 2 Guys.

He makes a living by sharing what he knows about mortgages with people, arranging mortgages for people and then insuring people.

He doesn't claim to know everything about mortgages himself which is why he teamed up with David Mercer — hence the ‘2’ in Go 2 Guys.

He writes posts regularly on his blog and has been told he has an ability to share his knowledge in a simple and sometimes memorable way.

Feel free to comment and ask any questions. Contact Campbell Hastie m: 027 697 7789.

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