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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.

Christchurch Mortgage Broker - Property Gazette June

Published by Scott Miller on Sunday, June 17, 2012 in


Current Interest Rates as at 15 June 2012  

Variable                       5.50%  
6 Month Fixed             5.25%
1 Year Fixed                4.99%
2 Year Fixed                5.25%
3 Year Fixed                5.35%
4 Year Fixed                5.85%
5 Year Fixed                6.10%


Interest Rate Outlook


It’s a crazy world we live in. As the European economies continues to implode and the impact is being felt all the way down in little old New Zealand. Interest rates are now at a 50 year low in New Zealand and who knows where it will stop. We thought the best rates had landed some 6 months ago, only to see a further fixed interest rate cuts.

The world’s financial problems did not disappear in 2008 when the whole “junk mortgage bonds” episode was exposed. Despite governments printing more cash all this did was delay the ripple effect of this meltdown which is now coming home to roost across Europe.

Locally, we are seeing month on month increases in lending with some of the highest levels of borrowing for over 3 years. The property markets in Auckland and Christchurch are bubbling away with average time to sell in their low 30s (days), however outside of these areas it is still quite subdues as migration outflows continue to hinder growth across the country (less people = less houses required).

Most mortgage rates are lower this month than last, only the floating and 6 months fixed rates remain unchanged. We are now seeing sub 5% rates in the one year fixed space and sub 6% rates as far out as fixed for 4 years now.

So what is the best option?

It really is difficult to tell, we do not believe we will see any rate rises from the Reserve Bank this year but with the 1 & 2 year rates lower than the variable it is hard to see any value in remaining floating unless you believe that rates will fall further in NZ.

Currently we favour the 2 or 3 year rates in the early to mid-5% range, although we are seeing (particularly with investors) home loans being locking in for  4 years @ 5.95% giving them some long term security around their investment. Everyone’s circumstances are different and this dictates their borrowing strategy, talk to us so we can assess each individual on their own merits and advise accordingly.


What's Hot

Free Money! As the banks squabble over market share they are throwing cash at clients to win their business. Depending on the LVR and loan size we are seeing cash incentives to clients of anywhere between $1,000.00 - $2,000.000, crazy stuff, but great for the clients - Refer to us!


Deal of the Month


It happens, ugly matrimonial splits, last month we helped a client arrange funding for a new home while also arranging finance to pay out their partner until the matrimonial home sold, not easy but achieved, leaving both partners happy (well as happy as they can be) Call Advanced Mortgage Solutions - we deliver!

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