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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 September

Published by Scott Miller on Thursday, September 06, 2012 in

Current Interest Rates as at 03 September 2012

Variable              5.60%  
6 Month Fixed     4.99%
1 Year Fixed        5.15%
2 Year Fixed        5.30%
3 Year Fixed        5.60%
5 Year Fixed        5.99%

Interest Rate Outlook

House sale volume was up 20% year on year for July 2012. Dwelling consents were up 5.70% for July. Mortgage lending was up for July with its strongest month of settlements since October 2009 and we even had net migration on the positive side of the ledger for the first time in a long time.

So is it up, up & away… well, yes, but very slowly and that is not a bad thing. There are many positives in the market currently, none more so than the continued sales activity in the Real Estate market, which is like a racehorse under a tight hold, being constrained by the lack of stock on the market. This of course is pushing many sales to auction, (causing stress for all), driving the number of days to sell down and of course prices up.
This issue is exacerbated by many households continuing to focus on reducing debt while interest rates are at a record low instead of upgrading their house. We still see the market moving conservatively as many consumers feel nervous about the risky state of the European and American economies, so would rather just ‘stay put’ and see how things pan out.

Interest rates remain very stable at record lows with some minor reduction in the 6 month and 2 year parts of the curve seeing all rates in this area lower than actual variable rates. We cannot see value in having any more than a small amount of your debt on the variable rate given it is higher than all rates out to 2 years and shows little sign of reducing any further, of course personal circumstances such as expected length of time holding the asset need to be taken into consideration.

Have a chat to us, we are negotiating some fantastic discounts presently and are happy to share our view on the best structure for you.

What’s Hot

With a lack of stock on the market Auctions are hot, please remember that clients who are pre-approved may require a registered valuation as a condition of approval, if so, they would need to have that valuation complete prior to auction to be able to bid – if you are looking at purchasing at an auction and are unsure about where you stand - ask us.

Deal of the Month

We had an American chap who did not yet have citizenship, he had been limited to a 70% LVR at other banks however we helped him obtain 90% from a mainstream bank and he was happily able to purchase the house he was chasing - Call us we deliver!

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