He has cited the burden his job has placed upon his family as the main reason for his decision.

For most Kiwis, this announcement will just add to the growing level of uncertainty we have already been experiencing. So what can we take from this, and what can we do?

Home / Investment Borrowers

We highly encourage you, now more than ever, to look at your interest rates and loan expiry dates. If you have concerns about rising rates, you should look at fixing some of your variable rates. This will help provide cash flow certainty.

Another thing you should check is if you have fixed rates that are due to expire within the next 6-12 months. If you do, you should consider breaking and refixing them.

Property Investment

It would now seem even more unlikely that the government will approve DSRs (Income to Debt Ratios). Before today's announcement, the New Zealand Herald published articles talking about how the Auckland market has now peaked and is currently slowing down. Adding the potential market turnaround due to John Key's announcement along with the uncertainty Trump's election has brought about, these would suggest that DSR announcements would likely be placed on hold.

Economic Trends

Will this be the spark that will cause reduced business confidence and an economic downturn?

Change is a certainty, especially due to the surprises 2016 has brought about. The need to plan and prepare for the future is becoming more and more apparent.

What is important is to assess risk, plan, and prepare for financial changes. Is your day to day financial cash flow very reliant on income (a lack of cash reserves)? If it is, maybe it is time to have a look at redundancy cover. Do you lack savings? If yes, it's time to put some cash aside to prepare for what may come.