22 August 2013
New LVR ratio means buyers need to be better informed
The New Zealand Reserve Bank’s announcement of new loan-to-value ratio restrictions, which come into effect on October
1, means seeking advice from mortgage advisers has become increasingly important, says General Manager of Mortgage
Express, Sarah Johnston.
“The new ratio restrictions will make it more difficult for first home buyers and investors to purchase property. This
means it has become even more important for home buyers to consult mortgage advisers, who can provide sound advice on a
broad range of options open to purchasers.”
Whereas banks will only advise on whether or not an applicant meets their own criteria, Registered Financial Advisers
(RFAs) are able to provide advice across many different lenders and products.
“The new restrictions mean that home buying has now become an affordability issue. It’s not so much about security
anymore, but what people can afford. So for example a young couple with great incomes but a low deposit and no security
will have to look outside the box to secure a loan,” says Johnston. “It’s really important for people to know what their
options are, so we would recommend a comprehensive financial assessment from a registered mortgage adviser.”
Mortgage advisers can review offers from banks as well as discuss alternative loan options, such as caveat lending,
parental guarantees and personal loans. They can also provide home buyers with no obligation ‘financial health checks’,
advice on re-financing, purchasing investment property and insurance.
About Mortgage Express
Mortgage Express is the fastest growing mortgage and insurance adviser company in Australasia. In operation since 1998,
it has access to over 16 lenders, 6 insurers and 200 products, and has helped more than 20,000 New Zealand families buy
their dream homes. With 37 advisers across New Zealand, Mortgage Express assists in settling over 2,200 loans annually.
Mortgage Express is owned by Harcourts, New Zealand’s largest real estate group, a privately owned New Zealand company
which operates in 10 countries around the globe.
ENDS