The Reserve Bank cutting the Official Cash Rate to 3.25 per cent today is welcome news for our first home buyers in our North Shore market.
Currently our in-house Mortgage Advisors are telling us that we have the highest level on record for preapprovals for first home buyers to enter the market. At this stage average mortgages are going out in the vicinity of $600,000, with a lot of family assisted purchases, using equity in existing real estate assets to support young family members in to homes.
Also the ability to convert KiwiSaver funds in to deposits for homes is starting to have a flow on effect, and seeing many of these buyers entering the market with additional funds for deposits. Banks are also offering incentives, for example when you take out a mortgage with ASB, they are offering a cash back of $3k to $5k.