Tips for Dealing with Rising Mortgage Rates

Are you ready to take advantage of the coming Auckland property boom by taking your property investment knowledge and skills to the next level?

interest rates are bad news for first home buyers and borrowers alike, with new homeowners and investors (those who bought homes in the last 18 months) facing much higher mortgage repayments for the time. With the Reserve Bank of New Zealand signalling further interest rate hikes are on the horizon can we avoid placing strain on already tight budgets and stay on top of bigger mortgage repayments?

During this event you will; are some options:

Check what mortgage you are currently on step is to determine how your mortgage is structured, as rate increases will affect the portion of your home loan, as any fixed interest rate terms ending that are going to be

• Enjoy playing our interactive property market simulation that will improve your property investment knowledge, skills and understanding of property cycles

• Become more informed and learn how to navigate the changing property market with confidence regardless of the latest impacting factors not sure how your home loan structured, contact your lender or mortgage adviser to help you work the details. It’s worth booking home loan restructure checka Mortgage Express branded to ensure you’re getting the deal available to you, and that home loan is structured to fit your requirements.

• Experience the decade long property cycle in just an hour and a half!

• Gain valuable yet rarely known property market insights

• Grow in confidence about what truly drives the property cycle and what are mere short term influencers that have a temporary impact on the property market

3. Devise a plan to help you manage higher repayments

• Experientially receive cyclical wisdom relevant to today whilst having fun

Get expert advice about your financial situation

• Take away lessons you can apply immediately in real life

Determine how interest rate increases impact you that you know how your home structured, your mortgage can help you determine the any interest rate rises will have home loan repayments. You also use a home loan repayment calculator – like this one your repayments are going to like.

• Network with like minded individuals

The Reserve Bank (RBNZ) has warned that a noticeable number of households that borrowed for the first time in 2021 will find it difficult to pay their mortgages and cover all their other usual expenses. If you’re

With more interest rate hikes predicted, it’s important to have a financial plan in place to help you cope with higher mortgage repayments. As well finding ways to cut back on unnecessary spending, building up a savings buffer could help you prepare for higher costs

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fixed rate term is nearing the now is a good time to discuss your mortgage adviser locking in interest rate. It’s also worthwhile comparing how your interest rates up against any other deals in the and this is something else your mortgage adviser can help you with.

If you’re concerned

About The

impact higher mortgage repayments could have on your financial situation, it’s best to seek help immediately. Contact your mortgage adviser or lender to discuss your situation before you miss any repayments. Contact a Mortgage Express branded if you have questions about your existing home loan and the impact higher interest rates could have on your financial situation.

Sunday, February 19, 2023 10:00 AM – 12:30 PM

Fickling Convention Centre

546 Mount Albert Road, Three Kings

Auckland Tickets $10

Source: https://www.mortgage-express. co.nz/blog/rising-mortgage-rates

always been the case.

In my own property investing experience a case in point was late in 1994, during the middle of the 1994 to 1996 property boom. At that time the “Market Influencer” of mortgage interest rates, lifted to 11% per annum. Many investors assumed the boom must therefore be at an end purely because of interest rates and so they stopped buying. This created a sudden surplus of keen vendors unable to find buyers for their properties. At that time in 1994 the general opinion was that the boom must now be over and prices were way too high now that interest rates had risen. However the boom had simply stalled, because interest rates are not the only determining factor of property values. They are a “Market Influencer” in cyclical terms and not a “Key Driver” of the property cycle.

Realising a window of opportunity had opened up I purchased a house in Auckland at the time for just $155,000, even though the vendor’s asking price was $189,000. The vendors had committed to buying another house and no one else had made an offer to buy their existing house and so they accepted my offer. Then within a few months the stalled boom resumed its progression and interest rates reduced. I sold the same house (due to a change in my own circumstances) within eight months for $188,000.

Market influencers mainly affect our perceptions of the state of the property market, rather than drive the property cycle to propel the property cycle, from one phase into the next, not any single one.

Market Influencers can affect the property market at any phase of the property cycle and are not typically predictable in the same way as Key Drivers are. Market Influences usually produce reactive decisions from some property investors, but offer a platform for savvy property investors to make proactive decisions. This is because savvy investors know how to recognise the difference between Market Influencers, (like interest rates) that only ever have a temporary influence on the market, and the genuine Key Drivers of the property cycle. Smart investors use the Market Influencer’s impacts on the property market to their advantage.

- KIERAN TRASS