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Landlords: Why Selling Your Investment Property to Tenants Could Be Your Best Move

As a landlord, the prospect of selling your investment property comes with several considerations, especially with the upcoming changes to the bright line test on July 1, 2024. This shift, reducing the bright line test from its current duration to just 2 years, presents a unique opportunity for both landlords and tenants....

What type of investment property is right for me?

In this episode of the My Mortgage Podcast, we're exploring the nuances between new builds and existing properties, navigating renovations, and understanding location dynamics.We're kicking off today by unpacking the differences between new and existing properties. New builds can offer distinct tax benefits and a streamlined lending process, while existing properties come with their own set of financial considerations and tax implications.There are two primary ways new builds come to life: fixed...

Reserve Bank changes - what you need to know about DTI's and LVR's

The Reserve Bank made some changes as of May 28th, 2024 regarding Debt-to-Income ratios (DTI's) and Loan-to-Value ratios, which is the percentage of a property's value that the bank can lend up to.These updates are pretty important for both homeowners and investors, so let's dive right in!...

Structuring your investment property purchase

In this episode of the My Mortgage podcast, Claire and Greg are diving into investment structures and ownership setups, exploring how they impact your borrowing ability and property ownership.We start today's episode by discussing the three most common ownership structures in New Zealand: Personal names, Look-through Companies,Family trusts. Each has its pros and cons, especially concerning tax implications and asset protection, and choosing the right structure depends on individual circumstance...

Tenants Buying from Landlords: A Strategic Move in 2024

With the recent changes to tax regulations coming in July 2024, many landlords are considering selling their investment properties. For tenants, this shift presents a unique opportunity to transition from renters to homeowners. In this blog post, we'll explore why purchasing the property you currently rent might be a strategic and financially savvy option....

How to use equity to renovate your investment property

Renovating an investment property can open up a lot of options and increase your cashflow significantly.When you have good equity in your property portfolio, it's a great way to add additional value, ensure you're meeting Healthy Homes compliance rules, and attract a great tenant.There is sometimes a perception that funding renovations can be a bit of a challenge, but not with good planning, advice, and an adviser on your Team! Here are some tips to help you navigate this process smoothly....

Government Announcement - First Home Grant changes May 2024

The Government has decided to discontinue the First Home Grant, which was the support they gave to buyers who had contributed to Kiwisaver for at least 3 years, and who met certain criteria around their income and the value of the house they purchased. Key things you need to know about the announcement...The sky is not falling - there are still plenty of options, and the First Home Loan, which allows a lower deposit and is Government guaranteed, is still in place.Kainga Ora aren't accepting...

"Show me the money" - How to fund your rental purchase

In this episode of the My Mortgage Podcast, Claire and Greg discuss how to fund your first investment property, and how this might look when you're approaching your bank.We discuss;Serviceability in property investment, breaking it down for everyday Kiwi homeownersThe big misconception - it's not just about rental income verses loan cost!Breaking down bank serviceability calculationsIncome is important - from salaries to more complex earnings like commissions, tax credits, and rental income. For...

Navigating the End of Your Fixed-Rate Mortgage: A Comprehensive Guide

Reaching the end of a fixed-rate term on your home loan can be a crucial time for homeowners. Here's a guide on what to do as your fixed rate comes to an end and how soon you can start looking at new fixed rates. We'll also touch on the current interest rate trends as of Mid 2024....

Why invest in property?

We're back for Season 2!In this episode of the My Mortgage Podcast, Claire and Greg talk about the power of leveraging investments, and why you should invest in property.We're talking about;How combining personal funds with borrowed capital can significantly amplify returns, showcasing the potential this has to enhance the overall value of a property.They discuss alternatives such as managed funds, stock market investments, business shares, and a variety of non-property-related investment avenue...

Buying Property in New Zealand as a Citizen who is based overseas

New Zealand citizens living abroad and looking to buy property in their home country face a unique set of challenges. Below we highlight key considerations for overseas buyers planning their return or investing from afar....

Bridging Finance in New Zealand: Is it possible and what else could you do?

Bridging finance can be a lifeline for homeowners looking to buy a new property before their existing one is sold. However, as Greg from My Mortgage explains, securing this type of loan isn't as straightforward as it used to be. In this article, we explore the intricacies of bridging finance and provide insight into making the best financial decision....

Strategies for Refixing Your Home Loan

When it comes to managing your mortgage, deciding how and when to refix your home loan is crucial. Here, we offer essential advice for homeowners approaching the end of their fixed-rate term, helping them make informed decisions tailored to their evolving financial situations....

Understanding the Ins and Outs of Home Loan Refinancing

Refinancing your home loan can be a strategic financial move, but it’s not without complexity. Let's break down what refinancing involves and what to consider before making the switch from one lender to another....

Navigating Home Loans for the Self-Employed

Navigating the maze of home lending as a self-employed individual can seem daunting. Unlike traditional salaried employees, those who own their own business or work as contractors face unique challenges when it comes to securing a mortgage. Greg from My Mortgage delves into this complex topic, offering valuable insights and advice for self-employed individuals looking to buy a home....

New Rules: Interest Deductibility - What is it and what are the new rules?

What exactly is interest deductibility? In this quick blog we’re looking at what interest deductibility is and what do these new rules mean?...When you think about investment property, you’d expect that it should be possible to produce a positive return, right?…A crucial piece to this puzzle is interest deductibility. The government is making some changes to these tax rules, and it's like they're putting a missing puzzle piece back in.Understanding the Puzzle Piece - Interest Deductib...

Should I pay money off my mortgage or should I add value to my property?

I recently had a client ask whether she should pay a lump sum off her loan, as her fixed term was about to expire, or use the funds she'd saved to put a new bathroom in her property.The answer around which option is best is actually not always straightforward.It depends a lot on your goals, interest rates, the market and a few other factors.Let's explore the options......

What's up with DTI's?

In the maze of financial jargon out there, one term that has been buzzing around lately is DTIs, or Debt to Income Ratios. From economic pundits to lending institutions, everyone seems to be talking about how DTIs will shape borrowing and lending heading forward when some highly anticipated changes are made.But what exactly are DTIs, and should you be concerned about them? Let's break it down....

Up-to-Date Financials for Business Owners buying residential property

A crucial aspect of residential home lending for business owners is the significance of keeping your business financials up to date. In recent years, banks have become increasingly stringent about ensuring that businesses have current financial records, especially as the end of the financial year approaches. In this blog post, I'll delve into why having up-to-date financials is vital for business owners, particularly those considering property purchases in the coming months....

Navigating Current Interest Rates: Why a Short-Term Fix Might Be Your Best Bet

At My Mortgage, we've been closely monitoring the current landscape of interest rates as of February 2024. With rates fluctuating between 6.4% and 6.9%, depending on the chosen term, we believe it's crucial to consider a shorter-term fix. This blog post aims to delve deeper into the pros and cons of various mortgage terms and why, according to our team at My Mortgage, a shorter-term fix might be the optimal choice in the current market....

Applying for a mortgage while on a fixed term employment contract - How does that work?

We commonly hear people say that it’s impossible to get a home loan when you’re on a fixed term contract but is that true? Read on to find out more!...Every situation is different when it comes to fixed term contracts and the banks are pretty good at looking at the overall situation and applying some common sense logic around each unique situation. If you’re on a fixed term contract and applying for a home loan, the bank will look at a few things. What is your employment history?...

I’m in a trial period - Can I apply for a home loan?

It’s less common these days to see trial periods in employment contracts since the law changed in 2018 to only allow employers with 19 or less staff to include trial periods. But the question does come up every now and then - can I apply for a home loan during a trial period? A trial or (sometimes referred to as a probationary period) allows an employer to assess your suitability for the role you were employed for over a given timeframe (but no more than 90 days). There’s heaps more inf...

The property I'm buying has unconsented work

After the flurry of purchasing in 2020 and 2021 where many people purchased properties without much due diligence, over the past 6 months we're starting to see more buyers conducting thorough checks before making their offers.So I thought we'd delve into a topic that has been cropping up quite a bit lately: non-consented work on properties and how to approach it from a bank lending perspective.We've seen instances where properties have unconsented work, title issues, or concerns raised by b...

Can I buy a house and renovate it?

In the last six months I've had numerous questions from first-home buyers who are eyeing up properties that are now available at a lower price due to their need for some tender loving care!There are a number of factors we need to consider here to make the most of your deposit, your skills and any future uptick in property values over time, too so you can make the most of this opportunity....

Do lending amounts vary between banks?

One of the common questions we're asked is whether lending amounts vary between banks, and the answer is a resounding "yes". We'll run through a few of the reasons behind these variations and why having access to a range of lending options can be a game-changer....