Don't let the baby boomers go bust!

The importance of multi-generational insurance.

Picture this: You’re aged 60 and semi-retired. Regular contributions to your retirement scheme over the years will soon pay off and you’re feeling quietly confident that in five years you’ll be ready to retire completely. You’ve worked hard during your long career, you’ve paid off your mortgage and made every effort to generate a good level of savings along the way. A comfortable retirement has been well-earned.

How imagine your 35-year-old daughter, a single mother of two, comes over to tell you she’s been diagnosed with breast cancer. After talking more about it, you discover...

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Latest OCR

Home owners beware While interest rates remain at record lows in a rising property market, borrowers may be left high and dry when the "dream combination" ends.

The Reserve Bank kept the official cash rate (OCR) locked at its all-time low of 2.5 per cent this morning, as was widely expected.

"What this means for consumers is mortgage rates are set to stay low for the course of this year," Westpac chief economist Dominick Stephens, said.

The lowest rates in 50 years have helped drive up prices in the housing market, particularly in the Auckland and Canterbury regions.

"It sounds like the dream combination for the home buyer, but I wouldn't get too excited...

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Bank signals mortgage restriction

Big four players will have to hold more capital to cover lending above 80 per cent of the value of property.

The Reserve Bank has given its strongest signal yet that it intends to restrict mortgage lending at high loan-to-value ratios, to rein in credit growth and house price inflation it already regards as "problematic".

The bank confirmed yesterday that it will increase, from September, how much capital the big four banks have to hold to cover lending at LVRs above 80 per cent.

That raises the permanent baseline from which potential temporary, counter-cyclical restrictions on LVRs would apply.

Such restrictions are one of four "macro-prudential...

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