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Nothing new! We bought in 1974, and the interest was 18 per cent for the first mortgage from the government, and 24 per cent for the second mortgage from the PSIS. We were broke for 20 years, and if it hadn’t been for the family benefit of $3 a fortnight, we would’ve gone under. We need another Jesus to scatter the lending institutions.
- Tina W
In response to Tina W: What’s new is the price-to-income ratio being so high now, at 11 or 12 times income, compared to 1974, at about 3 times income. Interest rate changes compound payments by the same ratio.
- Bevan T
Simply, this should have never happened to the NZ housing market.
Housing is a basic human right and [houses] are made for living in, and not to be gambled away like a casino game.
The average person saw the opportunity to become rich off flipping houses at the expense of society and only because of overseas investors paying ridiculous sums.
NZ being a low-wage economy was never able to sustain a million-dollar housing market. $400,000 used to buy a decent four-bedroom house - now the same house would cost $1.4 million. How is anyone able to service these mortgages on low wages and high-interest rates?
This housing game could end up in a huge disaster, but then again, there is a price to pay for greed. At least the Aussies protect their own people from this kind of thing happening in their own backyard.
- Tim H
Why is everyone surprised? This is just how economic cycles work.
- Brad T
We bought in 2008 and fixed for three years at 9.10 per cent.
I think some of the homeowners who owned their home during the last GFC have forgotten, or they were fortunate enough to have lower rates locked in that saw them through.
We have kept paying the same amount per fortnight since 2008 as interest rates have dropped, and we will be mortgage-free in three years.
Interest rates always go up and down - this was a vicious rise, but it was always going to happen.
- Lisa T
The Government and Reserve Bank screw up the NZ economy by dropping interest rates too low, flooding the market with cheap money and then compounding the problem by failing to read the room and adjusting them up in a timely manner, while the Government takes the highest tax take in NZ history and goes on a rampage of wasteful spending while all the important things like health, crime, poverty etc. get worse.
As a result, we have a deepening cost of living and mortgage rate crisis as the RB drives the country into an engineered recession. This going to end very badly for a lot of New Zealanders.
Yet 30 per cent of New Zealanders think the Government is doing a good enough job to vote for them. Beyond belief, really. There is no hiding from the facts.
- Guy M
Shall we introduce them to this Labour Government that overstimulated the economy longer than it was advised and which continues to waste money like a drunken sailor, driving up inflation? They are the cause of these interest rate hikes. By the way, I had a mortgage in the 1980s. It hit 20 per cent - so I think I know what scary is really about.
- Richard C
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