mortgage brokers christchurch

Talk to us for FREE Personal Mortgage & Home Loan Advice

0508-466-356

Mortgage Advice Blog

Get the latest news and tips about mortgage finance and the property market. Scott Miller, mortgage broker from Advanced Mortgage Solutions comments on housing and lending.

Chistchurch Mortgage Broker - Property Gazette August

Published by Scott Miller on Thursday, August 02, 2012 in

 
Current Interest Rates as at 02 August 2012  
Variable              5.60%  
6 Month Fixed     4.99%
1 Year Fixed        5.15%
2 Year Fixed        5.35%
3 Year Fixed        5.60%
4 year Fixed        5.79%
5 Year Fixed        5.99%
 

Interest Rate Outlook

Despite record low mortgage interest rates, sales volumes remain constrained by relatively low levels of stock on the property market. With buyers competing for a limited quantity of available properties, the days to sell have fallen close to a three year low, with prices continuing to trend higher.

Sales volumes in all regions of New Zealand (bar one) are above the levels seen for the same period last year with Auckland and Canterbury remain the hotspots of growth. Strong mortgage approvals suggest momentum in the market will continue. The recovery in residential building activity from historical low levels is also showing similar regional demand in Auckland and Canterbury. Migration numbers remain volatile, but a turnaround in net inflows will support domestic spending and the housing market.

The residential market is delicately poised with low numbers of properties for sale and rising prices demonstrating competing tensions within the housing market. Support continues to come from record low interest rates and aggressive competition across all of New Zealand’s mainstream lenders who are literally buying business at present. However growth continues to be slightly constrained by affordability and consumers desire to reduce their debt while rates are low.

There have been small changes to fixed mortgage rates for terms of 2 years and less over the past month. These changes have "smoothed out" the mortgage yield curve which now has the 2 year rate as its low point. By contrast there have been no changes to the floating rate or fixed rates for terms of 3 years or longer.

In our view the RBNZ is unlikely to cut the OCR for the balance of 2012. However with 6 month to 2 year fixed rates all lower than the floating rate, borrowers have the ability to "lock in" interest rate cuts by fixing. We therefore believe it makes sense to fix for 2 years – 3 years, not in an attempt to "hide" from the possibility that the RBNZ might raise rates, but simply to save money.


What’s Hot

Specials – depending on the balance of the portfolio of a bank they often run a “special” to try and attract money for a specific term. As an example we have one bank offering 4 year fixed @ 5.79% and a completely different bank offering 5.99% for 5 years fixed – Please call me for more details.

Deal of the Month

We had a client stuck between the purchase of their new dream home and the sale of their pre-loved dwelling, with interest rates at a record low we were able to structure a bridging loan for them that was no more expensive than what they were paying out monthly - Call us we deliver!

Contact us to get free personal mortgage and home loan advice








Captcha Image

For discounted interest rates on existing loans

100% New Zealand
SBS BankSovereignTowerWestpacAIAAMPANZAsteronASBAvanti Finance
Liberty FinanceThe National BankPartners LifePublic TrustDBR Property FinanceFidelity LifeGeneral FinanceOnePathBetter Mortgage ManagementThe Co-operative Bank