19/01/2022
Sage words from the awesome Kelly Blake.
Hu-ha is indeed a good way to describe it.
I endorse these words about lobbying MPs and the government to reassess these changes. People need to buy homes!
Thanks Kelly
There’s been a lot of hu-ha in the news about the changes to home lending and how difficult it has become to buy a home.
First many investors were taken out of the market, under the premise that it would be easier for the first home buyer. Investors have to have a 40% deposit in most cases, plus have lost tax deductibility.
Then the Government introduced the wonderful (NOT!!!) CCCFA legislation. It was meant to take loan sharks out of the market but has been a blanket rule applying to home lending as well. Banks were already assessing based on affordability and applied responsible lending with each application. However now they are scrutinising expenses to the point of adding up all the coffees you drink in a week.
But the biggest handbrake to the housing market in 2021 had to be requirement for first home buyers to have a 20% deposit, where previously it was 10%
On a home of $700,000 a first home buyer needed a $70,000 deposit. While a lot of money, it was a possible target between savings, KiwiSaver and the bank of mum and dad. But a 20% deposit is $140k and that my friends is a huge ask! Where do you get $140k?
Mortgage brokers have been leading the charge in lobbying the government to investigate the CCCFA legislation and it is now under investigation. If you want to see changes then now is the time to contact your local MP, write to the Government and sign the petition circulating. Now is the time to make the Government listen and undo some of the crazy and unfair rulings that were introduced in 2021.
Im back in the office from Monday, and am looking forward to helping more kiwis into homes.