Navigating the Current Recession: Insights from Your Trusted Mortgage Brokers
At Total Mortgages, we understand the importance of staying informed about the latest economic trends and their impact on the housing market. As your trusted mortgage brokers, we're here to shed light on the current recession and what it means for you, whether you're a homeowner or a prospective buyer.
A Closer Look at the Economy
New Zealand's economy has entered a recession, with a 0.1% contraction in the first quarter of 2023, following a 0.7% contraction in the final quarter of 2022. This economic downturn has been influenced by a variety of factors, including the impacts of Cyclones Hale and Gabrielle, teachers’ strikes, and a general slowdown in business services.
The Recession and Your Mortgage
In times of economic uncertainty, it's natural to wonder about the potential impact on your mortgage. However, it's important to note that the Reserve Bank of New Zealand has indicated that further interest rate hikes may not be necessary. This means that, for now, we don't anticipate significant changes to mortgage rates.
Homeownership in a Recession
If you're a current homeowner, you might be wondering how these economic changes could affect your mortgage. While we don't foresee a rise in interest rates, it's always a good idea to review your mortgage regularly to ensure it still suits your needs. At Total Mortgages, we can help you explore your options and find the best deal based on your unique circumstances.
Buying Property During a Recession
For those considering entering the property market, a recession might seem like a daunting time to make a move. However, it's crucial to remember that property is a long-term investment. Despite the current economic downturn, the property market has historically shown resilience over the long term.
In fact, a recession can sometimes present unique opportunities for potential buyers. For instance, sellers may be more motivated, which could lead to more negotiable prices. As your mortgage advisers, we can provide expert advice and help you navigate the market during these challenging times.
The Road Ahead
While the current economic climate is challenging, it's important to remember that recessions are a normal part of the economic cycle. They come and go, and while they can present challenges, they also offer opportunities for those who are prepared.
At Total Mortgages, we're committed to helping you navigate these uncertain times. We'll continue to monitor the economic landscape and provide you with the information and advice you need to make informed decisions about your property goals.
Ready to Take the Next Step?
Navigating the housing market during a recession can be complex, but you don't have to do it alone. Our team of experienced mortgage brokers is here to guide you every step of the way. Whether you're considering buying a new home or reviewing your current mortgage, we can provide the expert advice you need.
Don't let the recession hold you back from achieving your property goals. Book a call with us today and let's explore your options together.