Mortgage deferral scheme extended

The Reserve Bank today announced an extension of the regulatory guidance for the mortgage deferrals program to help customers in need.

The regulatory guidance means banks can continue to offer temporary mortgage deferrals to their customers. (Previously erroneously called “Holidays”)

In a nutshell if impacted by the Rona you may be able to extend your mortgage repayment hold out to 31 March 2021 .

Your Lender will be asking a swathe of questions as to whether or not this is a good idea and your reasoning behind such a request.

As always please get in touch if you require assistance.

OCR Held @ 0.25% but QE gets a Crank Up

QE got a boost up to $100B today in the MPS. OCR remains on hold, for now, but a bias to getting the ducks in row to go negative in the near future.

The Banks got a nudge along with the following… ” It remains in the long-term interest of banks to fully pass on the benefits of lower funding costs to their customers. ” IE: lower the interest rates advertised to borrowers.

OCR Held @ 0.25% but plans afoot to take it negative

The Official Cash Rate (OCR) is being held at 0.25 percent in accordance with the guidance issued on 16 March.

The Committee noted that a negative Official Cash Rate (OCR) will become an option in future, although at present financial institutions are not yet operationally ready.

It was noted that discussions with financial institutions about preparing for a negative OCR are ongoing.

1 and 2 year fixed rates now in the 2’s…who would of ever thought.! 😉

Temporary Mortgage Relief

The main banks are out with temporary mortgage relief packages in line with the 6 month “holiday” announced by the Government last week. This program is a JV between the RBNZ, retail Banks and the Government.

Options include taking interest only for 12 months ie: paying only the interest cost with no payments to reduce the amount of the loan.

Or a loan repayment deferral which involves no repayments at all for 6 months.

Make no mistake, this is no “Mortgage Holiday”.

Your loan amount will increase while your repayments are paused.

And the Lender will still charge interest on what you owe on your loan. This interest is added to your loan amount and they charge interest on that amount as normal.

GLTA 🙂

Bank Assistance

Facilities are being put in place to temporarily assist customers facing cash flow issues.

Options include..

Access:

Waiver of home loan application, top-up, and re-documentation fees (Early Repayment Adjustment fees still apply).

Relief:

  • Interest only repayments on home loans for up to 3 months.
  • Home loan holiday for up to 3 months (interest will still be added to the loan).
  • Ability to extend home loan term for up to 3 months.

OCR Slashed 0.75% to 0.25%

This morning the Reserve Bank has slashed the Official Cash Rate by 0.75% to 0.25%. We have never been here before folks. Historic.

Floating interest rates and short term fixed interest rates should get a trim depending on how much of the margin main Banks don’t keep for themselves.

PH: 0800 2 FINANCE. Auckland Based Mortgage and Insurance Assistance Since 2002