TONI DAWSON, a fully-qualified Mortgage Adviser with over 15 years’ industry experience, shares her expertise.
You may be aware that when you apply for a home loan, you’re Stress Tested at an interest rate that’s usually much higher than the interest rate you’ll actually pay.
Different banks have different names for this rate, including: Stress-Test Rate; Applied Interest Rate; Lending Assessment Rate; Servicing Sensitivity Rate
We’ve seen actual market interest rates across a wide range of lenders come down over the last month or so, which helps if you already have a loan and your interest rate is due for re-fix.
And now, due to the lowering of Stress-Test Rates, this helps you if you’re looking to take out a new loan. But how exactly does it help me?
It means that, all else being equal, the amount you can borrow has just automatically gone up because less of your income is going toward meeting the interest cost.
Put another way, it’s cheaper to borrow money, therefore you have more of your income left over, so the amount the bank might lend you has just increased as a result.
So that house you couldn’t afford yesterday … well, you might just be able to afford it now!
If you would like to know more, don’t hesitate to reach out.
We can help you with new purchases (property, business or other assets), as well as loan top-ups, interest rate re-fixes, refinances, restructures and loan maintenance, construction and renovations, and most importantly, advice.
- Toni Dawson NZCFS Level 5, BBS, GradDipBusStuds (Personal Financial Planning) FSP1000506
- Click here for my Publicly Available Disclosure.
- M 027 646 9269
- A 38A Wakelin Road, Beachlands 2018
- W https://loanmarket.co.nz/toni-dawson/
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