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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 Brokers Christchurch - Property Gazette - March

Published by Scott Miller on Thursday, March 07, 2013 in


Purchasing property over the February/March period has continued to increase as have the amount of properties for sale, however more properties on the market would help matters. The largest amount of feedback I am receiving from clients is there just isn't enough property to go around.

For those looking to purchase in Christchurch or Auckland this seems only to be set to get worse - My advice, keep looking - something will come along!

As you will read below, it has never been a better time to fix your mortgage. Please contact me NOW to see what I can secure for you.

So on with what’s happened this month.

      Current Interest Rates as at 7 March 2013

Variable             5.55%
6 Month Fixed    5.10%
1 Year Fixed      4.89%
2 Year Fixed      5.35%
3 Year Fixed      5.39%
5 Year Fixed      5.75%

The old saying “It starts in Auckland and then spreads down the country” looks to be ringing true with recent housing market data seeing a broadening strength of house sales across the regions in New Zealand. Mortgage approval numbers continue to rise adding further fuel to the building momentum in the property market.
The only concern to this is the increased level of commentary from the Reserve Bank who seem to want to hold interest rates low to stimulate growth across the country while not wanting to see the property market become too heated, which you could argue has already occurred in the “big smoke”.
They only have a couple of levers they can pull. One being interest rates and of course the other being to bring in restrictions around the loan to value ratio they allow banks to lend on homes. The latter could be politically be a very dangerous move, particularly if as suggested it is aimed at the region of Auckland.
Economic growth does appear to be finally kicking in with many economists predicting consistent growth of between 2.50% to 3% over the next 2 years. This growth may be enough to keep the Reserve Bank at bay in relation to keeping interest rates unchained for the foreseeable future. However, we suggest now is a good time for you to have your eyes and ears open as changes could be afoot in the not too distant future. We lean toward the Reserve Bank falling back on its more traditional control mechanism so watching interest rates over the course of 2013 could be advantageous.
Which brings us to our current borrowing strategy, with competition among the banks heating up in the 2 & 3 year fixed brackets there are some striking deals there at present, we have seen 2 year rates at 4.99% and 3 year at 5.39%, how can that be a bad price? Personally this writer favours them. As always though give us a call, as everyone’s circumstances are different.

What's Hot

Well it’s not hot but you need to know about it. ANZ have lead the charge and nothing surer their competitors will be right on their heels, with the Bank now controlling the valuation process, as such you or the client will no longer be able to choose the valuer you want to value a security property. It is designed to protect the bank and consumers but will slow the process.  

Deal of the Month

Last month we helped a client into another investment property when he had been told NO by his existing bank. He had only been self-employed for 7 months but with well put together interim financials and some good supporting information we were able to get him not only approved by an interest rate of 4.99% fixed for 2 years, he was a very happy man - Call us we deliver!

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