If you’ve ever chosen a KiwiSaver fund based on your age or how far off retirement or purchasing your first home you are, you’ve made a sound first decision. Growth funds through your accumulating years, moving toward balanced and conservative as you near key milestones: that guidance holds true and remains the right starting point. […]
Understanding the Changes to Debt to Income Ratios A debt to income (DTI) ratio is a metric used by lenders to assess a borrower’s ability to manage monthly debt payments and repay a mortgage. It is commonly used in many overseas markets, but it a new metric in New Zealand. The DTI is calculated by […]
June: Regulatory Update Navigating the intricacies of New Zealand’s property tax laws can be challenging, especially with the upcoming changes to the bright-line property rule and rental income tax deductibility that will come into force from July 1. These regulations significantly impact property owners and investors, and understanding the nuances is crucial for effective financial planning. […]
What You need to know… Today the Reserve Bank of New Zealand (RBNZ) Monetary Policy Committee announced that the Official Cash Rate (OCR) would remain at 5.50 percent with ongoing restrictive monetary policy settings still necessary to reduce inflation. Alongside many economic commentators, we are hopeful that as the current government takes action to rein […]
Head-to-Head: Income Protection vs Mortgage Protection Understanding the differences between Income Protection and Mortgage Protection policies. Amidst the hustle and bustle of day-to-day life, it’s crucial to safeguard your hard-earned success against life’s unexpected twists and turns. Whether you’re scaling the corporate ladder or carving your path as an entrepreneur, financial security and resilience form […]
Refinancing Considerations “If you fail to plan, you are planning to fail!” Picture this: you’re lounging on your deck soaking in those last few rays of autumnal sunshine, sipping a freshly brewed coffee and secure in the knowing that your mortgage is working for you, not against you. However, with many Kiwi’s mortgages coming up […]
This month’s announcement by the Reserve Bank that the Official Cash Rate (OCR) will be held at 5.5% was unsurprising and continues to offer some stability for the local market. However, with average mortgage rates having more than doubled over the past two-years, many New Zealand households are feeling the pinch. March 31st signals the […]
Interest Deductibility Changes The Government recently announced that it will restore deductibility for mortgage interest on residential investment properties. From the beginning of this month (April 01), landlords will be able to deduct 80 percent of their interest expenses, with this increasing to 100 percent from 1 April 2025. If you are a landlord with […]
As we approach the holiday season, the festive spirit often makes managing finances challenging, especially in the current climate of high living costs and mortgage rates. Balancing the joy of giving and celebrating with the practicality of budgeting can seem daunting. However, you can navigate this period without compromising your financial health with strategic planning […]
