The Mortgage Man - A podcast for everyone with or wanting a mortgage

By Aaron Cattell (The Mortgage Man)Education How To

The Mortgage Man - A podcast for everyone with or wanting a mortgage episodes

February 03, 2023 #63 Inflation is still up but Interest rates going down?!?!
Last week the inflation report came out and while it wasn't exactly what we wanted, it's still going to impact the housing market.
Ant and I have been going over the numbers and want to share our thoughts with you. We're breaking down how the inflation report will affect house prices and interest rates in the near future.
This week has been a little crazy in the mortgage world, with some banks raising rates and others lowering them. But, the good news is that long-term rates are now lower than short-term rates. This means that banks believe that interest rates will be lower in a couple of years. Yay!
And that's great for you, especially if you're thinking about refinancing or buying a house with a 20% deposit. You have some serious negotiating power now and can either get more cash back or lower interest rates. Let us, your mortgage bros, help you make the most of this opportunity.
We hope this email gave you a better idea of what's going on in the market. If you have any questions or just want to chat, hit us up!
14 min
January 26, 2023 #62; Jacinda Resigns! What Does This Mean For Property?
Well, that was unexpected.

Jacinda resigns.

What does this mean for the future of the property market, first-home buyers, and the rental market in New Zealand?

I think the biggest effect this is going to have is now it drastically decreases the chances Labour has winning the next election, thus meaning National is likely to get in.

And for that, there are some clear policy differences- listen to this podcast as Chris & I dissect them.
13 min
January 19, 2023 #61 - Should You Buy in 2023?
Welcome to 2023...

First let's talk about the elephant in the room: interest rates and house prices. Yes, they are currently on the rise and the market may seem a bit daunting. But don't let that discourage you. Rather let it be a warning. Some people would say buying now is risky.

And it is.

If you don't know what you are doing.

But take some comfort in this- seasoned property buyers are buying now because things are cheaper than before, 20% cheaper in some areas. And although you might think house prices are going to get cheaper, it's pretty hard to pick the bottom of the market.

It's nice for your ego to know you didn't overpay by $10-$20k, but that's a very small amount in the scheme of things if you are holding on to the property long term. You could just negotiate that as a discount today using the state of the market as evidence.

Yes interest rates are high, but once they do what they are suppose to (reduce inflation) then they will come down, the 15 year average is around 5%.

It's safe to assume that this could be the most expensive your mortgage will ever be, so it might be a struggle at the start but it will get easier as you go.

If you have decided you want to explore the option of buying this year then you'll need to understand HOW to buy a house in 2023. You'll need a deposit and enough income to service the loan, watch this quick video to understand more.

Then, if you are ready, fill in this form and we can call you to discuss options.

Here's to a great 2023, for all of us!
14 min
December 30, 2022 #60 - Property Predictions For 2023
As you start to unpack what a crazy year we've had in 2022 you might be thinking what on earth is going to happen in 2023?

You'd be right to wonder if 2023 is going to be even more unpredictable than this year we've just had.

We've had these same thoughts in the office so decided to do a podcast on it.

Firstly we recap what happened in 2022 then dive into what our predictions for 2023 will be.

How much higher will rates go up before they start to come down?

When will they start to come down?

Will house prices actually fall 40% like some people are saying?

When will house prices start going back up?

Is now the right time to buy? And if not, when is it?

Hopefully, it's some easy listening for your New Year break!

If you have booked a call with us using this form please be patient - someone will call you from the 9th of January 2023 onwards.

Happy New Year!
13 min
December 16, 2022 #59 - Do You Need Mortgage Protection Insurance? (& other ways to protect your wealth)
It's never nice to talk about, but sometimes serious illness, accidents or death happens.

In those situations, most people do not want to have to sell their homes to pay the bills or mortgage if one person can no longer work.

That's where mortgage protection insurance can help. But do you actually need it?

Today, Anthony & I discuss this and other potential insurance products to protect your assets.

We also talk about other ways to protect your wealth if you and your partner were to separate; again this is something that most people don't like to discuss but you would rather have things in place just in case.

Have a listen and if you have questions [email protected]
15 min
December 09, 2022 #58 - Fear Of Messing Up? Here's the most common fears of buyers, and how to fix them.
Fear of losing your deposit if the developer goes under?

Fear of buying a house that's going to leak or fall over?

Fear of overpaying in this market?

Fear of rates increasing so much you can't afford them?

Fear of the home value decreasing the day after you buy?

A lot of fearful thoughts..

But no worry..

We are here to save you- hopefully.

Chris and I cover why these thoughts, although quite normal, should not stop you from buying your first or any other home.

Why?

Because you have so many safety nets in place before you buy.

After all the bank is taking more risk than you by giving you a mortgage as they will own up to 80-90% of the property at the start, and they want to make sure the property is not overvalued or going to fall over the next day.

Have a listen to get more reassurance

..and remember buying when interest rates are higher is a good way to get a discount on a property; and that will make a bigger difference to the total interest cost over the lifetime of your mortgage.
19 min
December 01, 2022 #57 The Bank Of Mum & Dad; Should You Use Them?
The bank of Mum and Dad has become the 5th largest home loan lender in New Zealand, with an estimated $22.6 billion being loaned out to family members to help them get into a home.

But not everyone has this as an option to them..

Maybe, a sibling or friend can help instead.

Either way, there are some benefits and negatives to using family or friends as a bank

And there is a lot more information you should know before accepting a gift from someone..

Things like:

- How does the bank view it?
- Do I need a lawyer?
- Do I need to pay it back?
- My parents only have equity; can I use it?

All the answers can be found in this week's podcast.

If you need help please click here to book a call.
14 min
November 24, 2022 #56 - OCR Up 0.75%; What it means for you
The OCR is up again, and this time a massive 0.75 jump. The biggest jump we've had.

Should you care?

Yes; especially when you hear The Reserve Bank say things like "we are trying to purposely put NZ into a recession"

This podcast is quite sobering, but we do give you tips on how to get out the other side.

If there is only one thing you learn by listening it is this; stop spending money you don't have and start saving more than you think you need.
16 min
November 20, 2022 #55 Negative Equity; What is it & what to do about it
Negative equity is a term most of us haven't heard in a while but is becoming a real possibility for some homeowners, especially those that brought in the last 12-18 months.

But what exactly is it?

Negative equity is when the property you own is worth less than the mortgage you owe against it.

For example, you buy a property for $ 1.2 million, your mortgage is $ 1 million but then the house price drops to $900,000 - you now have $100,000 of negative equity.

Is this a problem?

Not really - only if you need to sell the property at a loss.

And if that happens the $100,000 that you owe the bank will turn into a personal loan that you will need to slowly pay off, at a higher interest rate.

You want to avoid that like the plague because your chances of buying again anytime soon and having to save a deposit again will be close to zero.

So if you are in this position; with increasing interest rates and living costs, you don't really have too many options; but here are three..

1. Grin and bear it, house prices will go back up.
2. Ask for an interest-only period, or mortgage holiday (more on these in our previous podcast here)
3. Figure out a way to increase your income (work more, get a flatmate)

We go into this a lot deeper in our podcast so have a listen here

Need help?

[email protected]
16 min
November 09, 2022 #54 Is Going Interest-Only A Good Idea?
As interest rates go up, mortgages get more expensive and you might have heard about "going interest-only".

What exactly does that mean?

First off, your mortgage is usually split into two parts;

The "principal" which is the actual amount you borrowed or the loan itself. So when you pay off the principal the mortgage amount you owe actually decreases.

And the "interest" which is the cost of borrowing money from the bank.

If you were just paying the interest-only portion but not the principal then your weekly cost will be lower (this is why people think it's a good idea)

If you went interest-only and hypothetically kept it like that for the full 30 years of the mortgage then you would never actually pay down any of the amount you borrowed from the bank.

This isn't great if you live in the home, you retire and you no longer have an income. Ideally, most people when they retire want to have no mortgage on their home so they don't have to worry about living expenses like rent or a mortgage.

When is interest only a good idea? Well, this is a debatable topic, but some property flippers or investors do this or it might help if you are really struggling to pay your mortgage as a short-term fix.

We dive a lot deeper into this and what consequences you'll have if you are thinking about using this facility; if you should do it from day dot or only use it as a backup plan.

Book a call here with one of our advisers today to go over if this is right for you.

18 min