News in brief: Borrowers to be among winners of Budget 2016

by NZ Adviser16 Dec 2015
Borrowers to be among winners for Budget 2016
Finance Minister Bill English released the Half-Yearly Economic and Fiscal Update and the Budget Policy Statement this week and PwC released a summary graphic below highlighting the winners and losers for the 2016 Budget.

Borrowers are set to be among the winners as low rates are forecast to continue.

PwC Partner Richard Forgan says, “There is an increase to capital expenditure over the next two years, but otherwise no real change to the basic stance. Expenditure will continue to be tightly controlled, with some extra financial capacity to play with pre-election.”

‘Mortgage stress’ among new homeowners
New Zealand new homeowners are feeling the weight of their mortgage as 40% of new mortgages leads them into instant “mortgage stress”, according to an article on

Reserve Bank told Parliament in a recent briefing: "About 40 percent of residential mortgages in New Zealand are issued at a [total debt to total income] multiple of more than five (that is, five times the borrower's gross income)."

Canstar banking researcher  Jose George said the "widely accepted wisdom was that mortgage stress equates to spending more than 30 per cent of your pre-tax income on your home loan repayments".

Another win for GFS 
Global Financial ServicesAjay Kumar has collected two top broker awards from ANZ Bank. 

Kumar received the Mortgage Adviser of the Year 2015 and the Valued Business Partner of the Year 2015 awards.

He thanked all the GFS customers and his entire team for the achievement and said their investments in technology and infrastructure have helped them provide their best service and savings to customers.

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