In this episode, we’ll explain the why and share our view on how banks may change their lending polices to cope with the newly released housing rules regarding the removal of interest deductions on residential investment property. What’s more, we’ll use an example to quantify how your borrowing power may be reduced once the new policies become effective, so that you can understand the urgency of applying for a home loan before it’s too late.

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Topics Covered:

1. Recap on new housing rules: the removal of interest deductions on residential investment property - 00:41

2. How the policy changes may reduce your borrowing power? - 02:29

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------------------

Prosperity Finance – here to help

If you would like to get more tailored advice, please feel free to get in touch. We are happy to review your situation and let you know how we can help. Call us at 09 930 8999 or email [email protected] for a chat with one of our mortgage advisors.

As mortgage brokers based in New Zealand, we can help you to achieve your financial goals. No matter you are first home buyer, property investor, or looking for buying a commercial property, or if you are a construction builder or developer, we're here to help.

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If that wasn't enough, you can also connect with us by...

Website: https://prosperityfinance.co.nz/

Youtube: https://www.youtube.com/channel/UC9kryOMVOEZv8dmWGHz0ppA

Linkedin: https://www.linkedin.com/in/conniewang-profinance/

Facebook: https://www.facebook.com/ProsperityFinanceNZ/

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New Zealand's government tackles at property speculators with a package of new housing rules to relieve runaway property prices and reduce the risk of a "dangerous" bubble. At the time of writing, it's still early to conclude how the new housing rules impact on the overall New Zealand property market, but definitely some investors could have already been spooked out of the market.

Here is the recap of one of the new housing rules fazing investors:

No interest deductions on residential investment property acquired after 27 March 2021. For the property acquired before 27 March 2021, the interests on the home loan will become progressively non-tax deductible against rental income from 1 October 2021.

As a result, we anticipate that banks are more likely to review their servicing calculator and make it tougher for investors to borrow. This means if you are purchasing an investment property, or purchasing family home but you already have investment properties, your borrowing capacity may be reduced.

However, we are still seeing that too many borrowers have multiple properties mortgaged to the same bank. Before banks tighten lending rules, we highly recommend reviewing your existing loan structure to avoid the risks that could have been eliminated.

In this episode, we'll share one of the most common mistakes people make when borrowing for investment properties – holding multiple property loans with one bank – and discuss the potential risks. Also, at the end of the article, we'll reveal the cost of separating all property loans with different banks to help you weigh up the risks and benefits and make an informed decision.

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Topics Covered:

1. Under the new housing rules, why should you consider splitting banks strategy? - 01:53

2. How to split property loans with different banks? - 05:21

3. What are the costs involved in splitting banks? - 06:35

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Subscribe To Our Podcast

Make sure you've liked and subscribed to our channel where we upload new content every week!

------------------

Prosperity Finance – here to help

If you would like to get more tailored advice, please feel free to get in touch. We are happy to review your situation and let you know how we can help. Call us at 09 930 8999 or email [email protected] for a chat with one of our mortgage advisors.

As mortgage brokers based in New Zealand, we can help you to achieve your financial goals. No matter you are first home buyer, property investor, or looking for buying a commercial property, or if you are a construction builder or developer, we're here to help.

------------------

If that wasn't enough, you can also connect with us by...

Website: https://prosperityfinance.co.nz/

Youtube: https://www.youtube.com/channel/UC9kryOMVOEZv8dmWGHz0ppA

Linkedin: https://www.linkedin.com/in/conniewang-profinance/

Facebook: https://www.facebook.com/ProsperityFinanceNZ/

Instagram: https://www.instagram.com/prosperityfinance/?hl=en

The removal of interest deductions on residential property can have a severe effect on investors’ cash flow, particularly those who have borrowed to the eyeballs. Investors have to pay extra cash to cover the tax obligation, resulting in a lack of cash flow to hold the property.

The question is: since removing the tax deductibility of interest, can investors still afford to hold the properties they already have? What will the actual cash flow be required to service all the expenses on investment properties, including extra tax obligations?

That's why we designed a “cash flow projection” calculator helping you to quantify the actual cash flow on your investment properties acquired before 27 March 2021, so that you can have a clear mind if you can afford the property or not.

Free rental property cash flow excel calculator download link: bit.ly/2OvPuUD

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Topics Covered:

1. Removing interest deductions on residential property, how will the new housing policy affect your cashflow? – 02:31

2. Other factors that may negatively affect cashflow on rental properties – 10:26

------------------

Subscribe To Our Podcast

Make sure you've liked and subscribed to our channel where we upload new content every week!

------------------

Prosperity Finance – here to help

If you would like to get more tailored advice, please feel free to get in touch. We are happy to review your situation and let you know how we can help. Call us at 09 930 8999 or email [email protected] for a chat with one of our mortgage advisors.

As mortgage brokers based in New Zealand, we can help you to achieve your financial goals. No matter you are first home buyer, property investor, or looking for buying a commercial property, or if you are a construction builder or developer, we're here to help.

------------------

If that wasn't enough, you can also connect with us by...

Website: https://prosperityfinance.co.nz/

Youtube: https://www.youtube.com/channel/UC9kryOMVOEZv8dmWGHz0ppA

Linkedin: https://www.linkedin.com/in/conniewang-profinance/

Facebook: https://www.facebook.com/ProsperityFinanceNZ/

Instagram: https://www.instagram.com/prosperityfinance/?hl=en

If you are self-employed, getting a home loan can be a bit complicated. Compared with PAYE, self-employed people need to provide more documentation to evidence your income.

At the time of writing, it’s March 2021. The end of the financial year is creeping up quickly. In this video, we will cover some tips on getting a home loan for self-employed people and some commonly asked questions about proof of income so that you can be well prepared.

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Topics Covered:

1. Banks now are requiring the latest financial statements. - 00:42

2. “How much should I pay myself?” - 03:11

3. How do banks assess financial statements for self-employed borrowers? - 04:10

4. Home loan Supporting documents required for self-employed borrowers. - 08:47

------------------

Subscribe To Our Podcast

Make sure you've liked and subscribed to our channel where we upload new content every week!

------------------

Prosperity Finance – here to help

If you would like to get more tailored advice, please feel free to get in touch. We are happy to review your situation and let you know how we can help. Call us at 09 930 8999 or email [email protected] for a chat with one of our mortgage advisors.

As mortgage brokers based in New Zealand, we can help you to achieve your financial goals. No matter you are first home buyer, property investor, or looking for buying a commercial property, or if you are a construction builder or developer, we're here to help.

------------------

If that wasn't enough, you can also connect with us by...

Website: https://prosperityfinance.co.nz/

Youtube: https://www.youtube.com/channel/UC9kryOMVOEZv8dmWGHz0ppA

Linkedin: https://www.linkedin.com/in/conniewang-profinance/

Facebook: https://www.facebook.com/ProsperityFinanceNZ/

Instagram: https://www.instagram.com/prosperityfinance/?hl=en

First home buyers appear to be getting squeezed from the market as investors snap up a large share of properties. It came as New Zealand’s house prices were more than 10 per cent higher than last 12 months.

Recently, some banks have announced tougher LVR (loan-to-value ratios) rules – investors need a minimum 40 per cent deposit while owner-occupier still need a 20 per cent deposit, start taking the heat out of the market. Still, the prices are rising too high and stretching beyond the limits of many first home buyers. Some of them are struggling harder with ever-rising property values.

Because we help many first home buyers on the daily, we understand the process and the barriers along the journey. So we thought we’d put together three top tips for first home buyers so that you know how to set up your buying rule, especially if you can’t afford your dream home in today’s market.

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Topics Covered:

1. Getting on the property ladder as soon as possible - 01:08

2. Focus on equity - 01:50

3. Buy an existing house rather than a new build - 04:37

------------------

Subscribe To Our Podcast

Make sure you've liked and subscribed to our channel where we upload new content every week!

------------------

Prosperity Finance – here to help

If you would like to get more tailored advice, please feel free to get in touch. We are happy to review your situation and let you know how we can help. Call us at 09 930 8999 or email [email protected] for a chat with one of our mortgage advisors.

As mortgage brokers based in New Zealand, we can help you to achieve your financial goals. No matter you are first home buyer, property investor, or looking for buying a commercial property, or if you are a construction builder or developer, we're here to help.

------------------

If that wasn't enough, you can also connect with us by...

Website: https://prosperityfinance.co.nz/

Youtube: https://www.youtube.com/channel/UC9kryOMVOEZv8dmWGHz0ppA

Linkedin: https://www.linkedin.com/in/conniewang-profinance/

Facebook: https://www.facebook.com/ProsperityFinanceNZ/

Instagram: https://www.instagram.com/prosperityfinance/?hl=en

An interest-only home loan is designed for the borrower to pay the interest charged on the loan for a set period, not the amount borrowed. The borrower won’t repay the principal until the term ends. Compared with another way of loan repayment (paying principal and interest), going interest-only helps reduce the monthly payments, and it also brings other advantages.

Many investors look to utilise interest-only loan on their investment properties. However, it’s also common to see people pay principal and interests for all the loans, including rental property loans. They feel it’s safer to pay down some principal, rather than just paying interest.

In this episode, we’ll explain why it's not a good idea to pay principal and interest for your rental property loan while you are still repaying loans for your family home, and the options you may have when the interest-only loan expires.

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Topics Covered:

1. Benefits of paying interest-only on investment property loans 00:25

2. What happens when interest-only loan expires? 02:44

------------------

Subscribe To Our Podcast

Make sure you've liked and subscribed to our channel where we upload new content every week!

------------------

Prosperity Finance – here to help

If you would like to get more tailored advice, please feel free to get in touch. We are happy to review your situation and let you know how we can help. Call us at 09 930 8999 or email [email protected] for a chat with one of our mortgage advisors.

As mortgage brokers based in New Zealand, we can help you to achieve your financial goals. No matter you are first home buyer, property investor, or looking for buying a commercial property, or if you are a construction builder or developer, we're here to help.

------------------

If that wasn't enough, you can also connect with us by...

Website: https://prosperityfinance.co.nz/

Youtube: https://www.youtube.com/channel/UC9kryOMVOEZv8dmWGHz0ppA

Linkedin: https://www.linkedin.com/in/conniewang-profinance/

Facebook: https://www.facebook.com/ProsperityFinanceNZ/

Instagram: https://www.instagram.com/prosperityfinance/?hl=en

“I want to use my rental property as a bank security to borrow, so that the new loan interest can be tax-deductible.” That’s what we’ve been hearing from our clients from time to time. But it’s not always right.

In fact, it depends on the purpose of borrowing. It’s not about the loan security. Say you’re looking to upgrade your home, even though you have an equity-rich rental property and use that for a security, the additional borrowing against the rental can not necessarily offset the rental income because the purpose is purchasing a new home, rather than buying a rental property.

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Topics Covered:

1. The rental income from property cannot be offset if the borrowing purpose is inappropriate not for purchasing investment purpose - 00:20

2. Which property to use as security for a home loan? - 02:42

------------------

Subscribe To Our Podcast

Make sure you've liked and subscribed to our channel where we upload new content every week!

------------------

Prosperity Finance – here to help

If you would like to get more tailored advice, please feel free to get in touch. We are happy to review your situation and let you know how we can help. Call us at 09 930 8999 or email [email protected] for a chat with one of our mortgage advisors.

As mortgage brokers based in New Zealand, we can help you to achieve your financial goals. No matter you are first home buyer, property investor, or looking for buying a commercial property, or if you are a construction builder or developer, we're here to help.

------------------

If that wasn't enough, you can also connect with us by...

Website: https://prosperityfinance.co.nz/

Youtube: https://www.youtube.com/channel/UC9kryOMVOEZv8dmWGHz0ppA

Linkedin: https://www.linkedin.com/in/conniewang-profinance/

Facebook: https://www.facebook.com/ProsperityFinanceNZ/

Instagram: https://www.instagram.com/prosperityfinance/?hl=en

Many NZ small businesses may need a business loan at some point. There are many common purposes for a business loan – you may need to upgrade your equipment, or cover unexpected expenses, or other uses that require more cashflow.

Just like you we are a small business, and we understand how challenging it is to grow a business without access to capital for extra cashflow. Sometimes, having that lump sum of money can be a determining factor in the success of your business.

However, getting the money you need from a bank can be difficult, especially when you’re looking to apply for an unsecured loan for your business. An unsecured loan refers to those that do not require securities of property, vehicle, or equipment.

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Topics Covered:

1. Getting an unsecured small business loan from a bank, why is it hard? - 01:29

2. The unsecured business loan that might help you - 04:26

------------------

Subscribe To Our Podcast

Make sure you've liked and subscribed to our channel where we upload new content every week!

------------------

Prosperity Finance – here to help

If you would like to get more tailored advice, please feel free to get in touch. We are happy to review your situation and let you know how we can help. Call us at 09 930 8999 or email [email protected] for a chat with one of our mortgage advisors.

As mortgage brokers based in New Zealand, we can help you to achieve your financial goals. No matter you are first home buyer, property investor, or looking for buying a commercial property, or if you are a construction builder or developer, we're here to help.

------------------

If that wasn't enough, you can also connect with us by...

Website: https://prosperityfinance.co.nz/

Youtube: https://www.youtube.com/channel/UC9kryOMVOEZv8dmWGHz0ppA

Linkedin: https://www.linkedin.com/in/conniewang-profinance/

Facebook: https://www.facebook.com/ProsperityFinanceNZ/

Instagram: https://www.instagram.com/prosperityfinance/?hl=en

Purchasing a home to live in feels like a rite of passage for many people. If you’re in the market to buy your first home, have you ever wondered is it better to buy an investment property first or buy a home to live in first?

In this episode, we’ll discuss 4 reasons why some people consider buying an investment property before first home, especially with current trends in New Zealand real estate market. We’ll also learn about the difference between buying a rental property and buying an owner-occupied property that every first-time buyer needs to know about, such as the deposit requirement, how banks calculate your servicing for home loan, etc.

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Topics Covered:

1. Why buying an investment property before your first home? - 01:25

2. The difference between buying an investment property and a first home to live in - 03:33

------------------

Subscribe To Our Podcast

Make sure you've liked and subscribed to our channel where we upload new content every week!

------------------

Prosperity Finance – here to help

If you would like to get more tailored advice, please feel free to get in touch. We are happy to review your situation and let you know how we can help. Call us at 09 930 8999 or email [email protected] for a chat with one of our mortgage advisors.

As mortgage brokers based in New Zealand, we can help you to achieve your financial goals. No matter you are first home buyer, property investor, or looking for buying a commercial property, or if you are a construction builder or developer, we're here to help.

------------------

If that wasn't enough, you can also connect with us by...

Website: https://prosperityfinance.co.nz/

Youtube: https://www.youtube.com/channel/UC9kryOMVOEZv8dmWGHz0ppA

Linkedin: https://www.linkedin.com/in/conniewang-profinance/

Facebook: https://www.facebook.com/ProsperityFinanceNZ/

Instagram: https://www.instagram.com/prosperityfinance/?hl=en

At the beginning of 2021, some New Zealand banks have tightened further their loan-to-value ratio (LVR) for an investment property to 60 per cent. This means the minimum deposit for investment property has been lifted to 40 per cent.

In this episode, we’ll update with you the latest LVR changes from banks in terms of investment property loans. Besides, we’ll share three tips on helping you buy a rental property if you do not have enough deposit or equity. At the end of the video, you’ll get inspired on what you can do on your current structure so that you can grab the opportunity while you still can.

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Topics Covered:

1. LVR restrictions changes for investment property – 01:11

2. How to buy an investment property if I don’t have enough deposits? – 04:11

3. What action should you take before all banks apply 60% of LVR restriction to investment property loans? – 09:14

------------------

Subscribe To Our Podcast

Make sure you've liked and subscribed to our channel where we upload new content every week!

------------------

Prosperity Finance – here to help

If you would like to get more tailored advice, please feel free to get in touch. We are happy to review your situation and let you know how we can help. Call us at 09 930 8999 or email [email protected] for a chat with one of our mortgage advisors.

As mortgage brokers based in New Zealand, we can help you to achieve your financial goals. No matter you are first home buyer, property investor, or looking for buying a commercial property, or if you are a construction builder or developer, we're here to help.

------------------

If that wasn't enough, you can also connect with us by...

Website: https://prosperityfinance.co.nz/

Youtube: https://www.youtube.com/channel/UC9kryOMVOEZv8dmWGHz0ppA

Linkedin: https://www.linkedin.com/in/conniewang-profinance/

Facebook: https://www.facebook.com/ProsperityFinanceNZ/

Instagram: https://www.instagram.com/prosperityfinance/?hl=en