Property Legals

A house can’t buy your groceries or mend its own roof, and with inflation on the rise, those over 60 may have the option of a reverse mortgage to free up some cash.

A reverse mortgage lets you borrow funds using your home as security. The lender gets its money back (plus interest) when the house is sold, and in the meantime, it frees up some spending money.

You must be at least 60 to qualify, be mortgage free (or close to) and you can only borrow a percentage of your home's value.

You may choose to borrow a lump sum, draw on it as needed or receive regular payments depending on your needs and to keep interest down.

Getting independent legal advice before your loan is finalised is essential to make sure you fully understand how the reverse mortgage works. It's important to consider your personal circumstances and the pros and cons involved.

A house can’t buy your groceries or mend its own roof, and with inflation on the rise, those over 60 may have the option of a reverse mortgage to free up some cash. A reverse mortgage lets you borrow funds using your home as security. The lender gets its money back (plus interest) when the house is sold, and in the meantime, it frees up some spending money. You must be at least 60 to qualify, be mortgage free (or close to) and you can only borrow a percentage of your home's value. You may choose to borrow a lump sum, draw on it as needed or receive regular payments depending on your needs and to keep interest down. Getting independent legal advice before your loan is finalised is essential to make sure you fully understand how the reverse mortgage works. It's important to consider your personal circumstances and the pros and cons involved. #propertylegals #property #Newzealand #mortgage #lending #finance #realestate #housing #retirement #budget #spending #law

Banks are now stress-testing mortgage serviceability at around 8%, a steep increase from the rates used last year which were in the high fives.

Buyers will be looking to tighten their budgets and work closely with their broker to obtain pre-approvals.

Click on the article below for more details.

'Less money sloshing around’: What 8% test rates mean for the housing market Buyers won’t be able to spend as much and homeowners’ finances will be squeezed, warn experts.

According to ANZ's economists, New Zealanders should expect to see continuing house price drops and a slowdown in residential construction.

In their latest NZ Property Focus report, they predicted house prices to decline by 11% over the course of this year but warned that it's possible we may see a bigger decline.

The report also warned that residential construction is due to take a hit. With residential investment already in the firing line as interest rates continue to push higher, house prices fall and shortages in both materials and labour. These factors reduce the construction of new homes and continue to add uncertainty in the near term.

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ANZ warns of continuing house price falls & a slowdown in residential construction ANZ's economists warn that the stars are aligned for a slowdown in residential construction