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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.

Mortgage Broker Christchurch - Property Gazette - May

Published by Scott Miller on Friday, May 04, 2012 in

                 AMS Property Gazette - May

I would like to start May’s Property Gazette by saying thank you to all those who visited our new Facebook page and clicked the like button. Your participation is most welcome.

If you missed this opportunity last month and would like to have a look please click here to be automatically taken to the Advanced Mortgage Solutions welcome page.

Now on with what’s happened this month.

Current Interest Rates as at 1 May 2012  

Variable               5.50%  
6 Month Fixed     5.40%
1 Year Fixed        5.40%
2 Year Fixed        5.55%
3 Year Fixed        5.85%
5 Year Fixed        6.65%
Interest Rate Outlook

There’s a more positive vibe in the market as the new financial year gets underway. The increase in general business and housing activity (which was widely predicted to occur in 2011) is now starting to appear.

This is being supported by good demand and prices for residential properties in the larger cities of New Zealand. The continuing population increase of Auckland, and the Christchurch earthquake rebuild mean that these 2 cities are leading the charge. The increase in house prices should start a flow on effect to other sectors in New Zealand.

This demand is now starting to push up an increase in both residential property rents and values. These increases are driven purely by supply and demand. The shortage of houses being built (coupled with the perception that prices are rising), is creating strong demand in the market, even while economists are quoting various housing unaffordability statistics.
We have seen residential property values rise 3.0% across the country over the last year and are now just 3.0% off their 2007 highs. Auckland has led the charge, up 5.0%, followed by Christchurch at 4.1%, and Whangarei at 3.1%.

Mortgage rates have not changed and have held steady since the last round of reductions in mid-February. The mortgage curve has been very “flat” out to 2 years. We still believe the Reserve Bank will move rates up late in 2012 or early in 2013, this would suggest that it might be worth fixing for 2 or 3 years, particularly as longer term fixed interest rates can go up without a change to the official cash rate.

Now is a great time to look into your options. Please feel free to email me by clicking here or contacting me on 0508 466 356 to talk through what’s best for you.

What’s Hot

The market!
Money has never being so cheap and banks are fighting over each other for business. We have seen an increase in lending every month this year and feel that it is set to continue.

Deal of the Month

Consolidating debt can be a great way to reduce your monthly commitments and get back on top of your cash flow. Last month we refinanced a client’s debts, putting together the mortgage, car loan & 2 credit cards which were costing $1,880.00 per month into one loan @ 5.50%, reducing the payments by 690.00 per month to $1,190.00 per month - call us we deliver!

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