Dear RSFA Clients,
Here we are again, the 2nd wave of Covid-19, and NZ has been in another lockdown. Buy this time, we are far more prepared, well-informed, and appear more organised for the most part to help minimise a 2nd wave of Covid-19 spreading, that not only can affect our health, but also cause economic disruptions which is fairly common knowledge now.
We know that this was a stressful time for especially Aucklanders as Auckland moves out of Level 3 ( as of Monday 31st August), to Level 2. This could have posed a hassle if you were in the midst of buying, selling or moving houses. We are here to help with any enquiries you may have, and your solicitor will also be a good resource.
Home Loan Repayment Deferrals
The Reserve Bank has confirmed that eligible Kiwis will be able to access home loan repayment deferrals (and extend existing deferrals) up to 31 March 2021, next year following the second lockdown in Auckland.
The regulatory guidance means banks can continue to offer temporary mortgage deferrals to their clients, without those loans being viewed as being ‘in default’.
The extension becomes effective once the existing guidance expires on 27 September and will apply until 31 March 2021, at which point the usual treatment of financial hardship cases will resume (at least at this point). Banks will still be able to offer deferrals to borrowers after this date, but they will not have the same regulatory treatment.
Official Cash Rate Lowered
The Reserve Bank has also kept the official cash rate from 1 percent to 0.25 percent in accordance with the guidance issued on 16 March.
The Monetary Policy Committee are keeping long-term interest rates low to build confidence and enable cheaper lending for businesses and households by buying up to $100bn of bonds in the secondary market by June 2022.
Monetary Policy will continue to provide important economic support in the period ahead. Its effectiveness is evidenced by retail banks’ lower funding costs and lending rates, which are benefiting businesses and households.
RSFA Team is here for you
We’re still operating and here to provide advice and support our existing client base. RSFA’s A-Team is available for video meetings and calls. You ca also contact us via email or feel free to send a text. Our preference is email to Rod at email@example.com or Peach at firstname.lastname@example.org. While texts are fine, they do have the odd chance of being ‘buried’. Emails are more reliable.
We’d also love to hear your thoughts! Connect with us through our social media (see below) and be updated on news and blogs about finance, mortgage, insurance and Kiwisaver.
Stay safe and us Kiwis can get through this all together again.