Hi <<First Name>> 

I hope you are keeping well during this unusual time. While the financial facade of our world has certainly changed in unprecedented and significant ways this year, it's not all doom and gloom. Here's some interesting developments to note.

Three impacts that are affecting the mortgage market: 
1. Approved buyer numbers are growing
But there's very little to buy.  There are increasing numbers of approved motivated buyers in the market, with all their boxes freshly ticked, ready to act when they see what they want.

However, there is a lack of properties on the market; many of my buyers are getting caught in bidding wars and multi-offer situations.  While a number of my sellers have pulled their properties off the market in recent months, the ones who have stayed in the market have been selling quickly with anticipated prices achieved.

2. The balancing act 
LVRs loosen but banks tighten credit criteria for new home buyers. The advertising tells us that the banks are here to help. That is true for existing homeowners however it is still tough for people trying to break into the market.

The banks have tightened their credit criteria. This means that first home buyers, those with construction loans, and people who are self-employed are all finding it that little bit harder to borrow from the bank right now. 

The Reserve Bank is encouraging banks to be brave, but the banks are taking a softly softly approach, and are generally being more cautious. There is variation out there when it comes to lending policy, as banks tighten criteria at different speeds and focus on different areas of income and expenditure. It really does pay to shop around, or better still, get a broker to do the looking for you. Give me a call, and we can discuss the best approach for you. 

3. A word for investors
While generally, banks have tightened their credit criteria, one exception is that investment properties can be organised at a lower 20% deposit now. There is some limited availability, but this is good news for those in the investment market. 

If you're thinking of dipping a toe into the investment pool, or are a seasoned investor, I'd love to chat with you and see what we can do. 

Please get in contact with me if you have any questions. 

Kind regards,
Tony Ridley Founder & Director, Go Mortgages
tony@gomortages.co.nz   021 754 350