September saw New Zealand home loans hit their most affordable rate in eight years; due to the downward pressure on interest rates and the below average property prices. According to a new report, last months was the most affordable for those looking to take out loans and mortgages in New Zealand since 2004.

This comes at the same time as the amount of a persons wage spent on a mortgage drops 0.01% to 20.6%. Home ownership still comes at a high price however, as the average wage is still not enough to pay the average property price.

That said, banks in New Zealand are very eager to lend, with first time buyers benefiting, as Rhonda Maxwell, from Roost Home Loans explains; “First home buyers are seeing low interest rates and a stable outlook into early next year, which is improving confidence…Banks are also competing hard to boost their lending to property investors and first home buyers, who are increasingly withdrawing their KiwiSaver funds to use for deposits.”

To understand the full step-by-step process to buying a property in New Zealand, collect The Overseas Guides Company’s ‘New Zealand Property Buying Guide’