Last year was a tough one for first-home buyers! They faced rapidly escalating house prices, rising mortgage rates, reinstated loan-to-value ratios (LVRs), and then the cherry on the top; the new Credit Contract and Consumer Finance Act (CCCFA) lending rules in December. We saw low deposit loans pulled in November and December, doubling the deposit required to get a foot in the door. All this combined with record house prices, we saw a lot of first home buyers locked out of the market.

Over the last few weeks, we are starting to see a glimmer of light at the end of the tunnel with changes in the housing market, announcements of the CCCFA looking to change, alongside lenders opening up to high LVR low deposit lending with the exception, and a fair few boxes to tick!  There have been plenty of daunting headlines and a lot of “if” and “but” scenarios, and this being said we are feeling cautiously optimistic about the future. Over the last few weeks, we are seeing articles being published regarding the slow down of house prices. We are seeing more houses being advertised with a price, making this a game-changer for first home buyers, allowing more insight and having more room for conditional offers.

Property data company from CoreLogic shows the housing market weakened a little in March, and according to CoreLogic’s House Price Index,  the main centers recorded either a reduction in the rate of growth of average housing values or an outright decline in average values compared to February.

Even with the “buyers market” developing, we are still seeing servicing the lending required being the biggest hurdle! This is where having a Mortgage Adviser work for you and approach various lenders can make all the difference! We are seeing a “No” at one lender and then a “yes” with up to $70,000 more lending at another bank. So options are important!

So, with a weakening market, more listings popping up, and the banks opening up a little for First Home Buyers, it’s a good time to start getting prepped to get on the property ladder. Your scenario may not fit one box but may fit another, and that is where we can help!

We are helping lots of First home Buyers currently. So get in touch and start the ball rolling!

Olivia Osborne Summit Mortgages

Olivia Osborne- Mortgage Adviser, Financial Adviser, FSP1001299

Being a Mortgage Advisor appealed to me as I love helping people! Whether it being their first home, building a new property, expanding their family and needing a bigger home or investing - all are exciting changes in life. It's great being able to help to put clients at ease through what can be a stressful process! Before joining the Summit Mortgages team I studied a Bachelor of Social Sciences at Waikato University majoring in Geography and Sport and since then I was in the banking industry for 4 years. I grew up locally on a dairy farm and have since been through the first home buyers journey and live in Morrinsville. In my free time I enjoy sport and the outdoors.