Re: Purchase 9 Greenhill Crescent

Economic times may be tough but the good news is that housing in New Zealand is becoming more affordable.

A sharp reduction in mortgage rates drove a record improvement in housing affordability in November to its best level in 3-1/2 years, the Wizard Home Loans Affordability report showed when it was released today.

Banks and other lenders have slashed mortgage rates by around 75 basis points to an average 7.5 per cent for two-year fixed rate mortgages in November.

And rates have been cut further since the end of November after the Reserve Bank cut the OCR by a record 150 basis points to 5 per cent on December 4.

That means the proportion of an after tax median income needed to service the mortgage on a median priced home dropped to 63.9 per cent in November from 67.9 per cent in October.

The 4 per cent reduction was the biggest monthly improvement on record in the Wizard Home Loans Affordability report and takes this measure to its best level since July 2005.

To read the full NZ Herald Article click here

Posted: 15 Dec 2008

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