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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 October

Published by Scott Miller on Tuesday, October 02, 2012 in
Current Interest Rates as at 02 October 2012  

  Variable            5.60%  
6 Month Fixed   4.99%
1 Year Fixed     4.95%
2 Year Fixed     5.20%
3 Year Fixed     5.60%
5 Year Fixed     5.99%

Interest Rate Outlook

The term sailing into a head wind would presently typify New Zealand’s economy at the moment. While we have some strong internal momentum it is being constrained by variables largely outside of our control.
The housing market continues to perform strongly; prices are progressing upwards with Auckland leading the charge which is a great sign. The average number of days to sell a house last month was at a 4 year low at 36 days. This is primarily driven by a lack of stock in the market which is also pushing house prices up.
Trending against our domestic growth are international pressures with our nearest and largest trading partner. Australia is facing some challenges in their powerhouse sector of mining which is facing its first downturn in more than a decade as China (their major consumer of minerals) are slowing their consumption. Interestingly a positive spin off of this is the reversal of people leaving New Zealand to find jobs in Australia which slowed last month and saw NZ enjoy neutral immigration figures. If this trend continues we will see a return to positive migration which can only help our economy further.
Last month saw a further small easing in interest rates in the mid-term area of the rate cycle with 2 year fixed rates now being the lowest option in the market. As such we see the current 2 year fixed rate as offering very good value, it is around 0.40% under the carded current variable rate and strong deals are being priced at low 5%. Many people are enjoying a positive spin off of this as they are finding a little extra cash in their hands. The smart move of course is to keep your monthly payments the same which in turn reduces their term, saving you thousands of dollars in interest payments.

If in doubt as to the right move please call us to have a chat as the “right” decisions for each client is specific to your own set of circumstances.

What’s Hot

The worst kept secret in the banking sector is finally out with ANZ announcing that the NBNZ brand is to cease as they roll the two brands into one across the country – a positive spin off is they are being very generous in pricing to help keep clients. R.I.P the black horse – a kiwi icon!

Deal of the Month

Last month we helped a couple onto a house after they had relocated from one region to another, they were only now setting up their new business but thanks to some well-prepared cash flow figures and good security position we were able to help them out - Call us we deliver!

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