Tight cash flow is a reality for many New Zealand property investors right now. Higher interest rates, stricter bank stress-tests, rising insurance, maintenance costs, and compliance with the Healthy Homes Standards have squeezed margins. Even long-term investors are feeling it. As a mortgage broker Tauranga, here’s how to stay ahead of the squeeze rather than reacting once it’s too late.

1) Get crystal clear on your numbers

List each property with rent, mortgage, rates, insurance, and maintenance for the next 12 months.

Pro tip: Build a “what-if” forecast. Model 0.5–1% rate rises and note the repayment impact. Knowing your breakeven point guides rent reviews and refinance timing.

If you’re nearing retirement or changing jobs, factor in that income shift early — your servicing capacity may tighten sooner than you think.

2) Fix issues before they snowball

• Review interest-only terms and request extensions before expiry if needed.
• Update rents so yields reflect the current market.
• Prioritise maintenance — small leaks become expensive once Healthy Homes non-compliance is triggered.

Early intervention costs less than emergency action later.

3) Think creatively about structure

• Refinance or consolidate debt: moving one loan to a sharper rate/longer term can free monthly cash.
• Split lending across lenders: different banks treat income and equity differently — diversification reduces risk.
• Use short interest-only periods to stabilise cash flow while rents catch up.

Some clients have used equity from one Tauranga rental to ease pressure on another, avoiding forced sales.

4) Explore non-bank & alternative funding

Main banks have tightened policy, especially for higher debt-to-income investors. Non-bank lenders, private funding, or peer-to-peer options can bridge gaps. While rates are higher, they may:

• Accept short-term or irregular income.
• Allow higher rental-income calculations.
• Move faster on approvals for time-sensitive refinancing.

Used strategically — with a clear exit plan — non-bank lending can keep your portfolio intact through a tight cycle.

5) Stay tax-smart and compliant

With interest-deductibility changes, ownership structure matters. Talk to your accountant about:

• Company or trust ownership and Bright-line implications.
• Claimable expenses for Healthy Homes upgrades.

6) Seek advice early — not when cash runs out

Engaging a broker early means more options. We can:

• Re-model your lending across multiple banks/non-banks.
• Compare interest-only vs principal-and-interest mixes.
• Identify lenders with flexible rental policies.
• Recommend what to fix vs float (or split) right now.

Case study — Tauranga investor

A client with three rentals saw repayments jump 35% after refixing. Instead of selling, we:

1. Shifted one property to a non-bank lender offering a longer term.
2. Extended interest-only on another property.
3. Lifted rent after a Healthy Homes update improved tenant quality.

Result: positive cash flow restored within three months — no property lost.

Keep perspective — cycles shift

Today’s tight conditions will ease as inflation and rates settle. Your goal is to bridge the gap without eroding long-term wealth. Short-term liquidity planning, realistic rent adjustments, and the right loan structure make that possible.

Bottom line

Cash-flow pressure doesn’t have to derail your investment goals. By forecasting properly, addressing weak spots early, and staying open to creative finance options, you can stay resilient through tougher market phases.

Book a quick chat to review your portfolio and map refinancing options that protect cash flow for your Tauranga investments.