That Home Loan Hub
Welcome to That Home Loan Hub, your ultimate guide to mastering the world of home loans and property. I'm Zebunisso Alimova, here to simplify the complexities of real estate and provide you with expert insights and the latest trends.
Whether you're a first-time homebuyer, an experienced investor, or simply curious about the property market, this podcast is for you. Join me each week as we unlock the secrets to property success and help you make informed decisions. Let's dive into the world of property together!
That Home Loan Hub
Beyond the Headlines: What Budget 2025 Means for Your Financial Future
The 2025 Budget has arrived in Aotearoa, and regardless of your political leanings, its implications for homeowners and prospective buyers deserve your attention. Moving beyond economic jargon, this episode delivers a practical breakdown of what Budget Week means for your mortgage, KiwiSaver, and home ownership dreams.
We dive straight into the pressing question: will this budget make buying a home easier or harder in New Zealand? The answer hinges on several factors, particularly how the budget might influence interest rates. If government spending restraint helps cool inflation, the Reserve Bank might lower rates faster – good news if you're about to refix your mortgage or enter the market. Conversely, increased infrastructure spending could keep rates higher for longer, creating a very different scenario for buyers and homeowners alike.
First-home buyers might feel overlooked in the current budget landscape. With the First-Home Grant discontinued last year and no adjustments to house price caps or KiwiSaver incentives, meaningful support for aspiring homeowners appears limited. Perhaps most fascinating is how budget announcements influence bank lending behavior beyond official interest rates. Strong government investment in jobs and income support could ease strict servicing criteria, while economic uncertainty typically results in tighter lending conditions – we've seen this pattern play out repeatedly in recent years.
My advice for navigating post-budget realities: stay informed about upcoming OCR announcements, prepare your position if you're planning to buy (sort your deposit, clean up your credit, talk to an advisor), and focus on financial resilience if you already own. While this budget won't transform everything overnight, it establishes important precedents for the housing market. Subscribe to my fortnightly Thursday webinar where I'll continue unpacking how these economic shifts affect your property and financial goals!
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Kia ora and welcome back to the show. It's budget week here in Aotearoa, and whether you love politics or avoid it like a bad mortgage rate, this is the episode for you. I'm not here to drown you in economic jargon. I'm here to break down what the budget might actually mean for your mortgage, your kiwi saver and your dream of owning a home. So let's start with the big question Will the 2025 budget make it easier or harder to buy a home in New Zealand? Well, the answer is always, like in finance, it depends. But here is what I see from the mortgage advisor's chair Number one will the interest rates come down faster? Look, the government's economic outlook is predicting that it may go down, but that could influence the Reserve Bank's decisions on the official cash rate later this year. The way I see it, if the budget cools inflation think lower spending, tighter fiscal control then interest rates may drop faster. That's good news. If you're about to refix your mortgage or trying to buy a house right now, that's good news. If you're about to refix your mortgage or trying to buy a house right now. However, if there is a lot of new government spending, especially on infrastructure or wage increases, we could see the Reserve Bank hold or even hike again, and that keeps the mortgage rates higher and longer. So it could swing either way and we just don't know which way it's going to swing. Now, is there any real help for the first-home buyers? I was looking closely for the targeted support for the first-home buyers, things like the first-home grant that disappeared last year, adjusting house price caps or new KiwiSaver incentives. Now, if those weren't there, that's a missed opportunity. Home ownership is still out of reach for many Kiwis and those few tweaks would have made the difference. But unfortunately we don't see this happening just yet.
Speaker 1:And number three is usually around the lending, so the lending rules and indirect impact that it may have. This is something you won't see on the news, but what the government announces can change how the banks think. So, for example, if there is a strong investment in jobs and income support, lenders might view households as more stable. That could ease up some of the strict income servicing criteria. And we have seen it in the last year. The servicing rates have been going down. But if things feel uncertain, like rising unemployment or shaky policy, the servicing rates have been going down. But if things feel uncertain, like rising unemployment or shaky policy, the banks tend to tighten up. It's all interconnected and, again, we have seen that happen before. A couple of years ago. The servicing rates were climbing up, making it unreachable for a lot of Kiwis to buy the house.
Speaker 1:So what am I telling my clients right now? My advice If you're fixing your mortgage, stay informed. The next OCR announcement is coming in a couple of weeks time and we'll be able to see how it responds after the budget. If you're planning to buy, use this momentum to straighten your position. Sort out your deposit, clean up your credit file and talk to an advisor early. And if you're already in your home, sort out your deposit, clean up your credit file and talk to an advisor early. And if you're already in your home, think about resilience. How secure is your own job, your budget, your buffer? I hope this has been helpful for you. And look, this budget might not change everything overnight, but it sets the tone. I'll be keeping an eye on how lenders respond and I'll bring you up to date as the dust settles. Until next time, stay informed, stay empowered and, as always, keep making smart money moves. Come and join me at the webinar every fortnight on a Thursday.
