mortgage brokers christchurch

Talk to us for FREE Personal Mortgage & Home Loan Advice

0508-466-356

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.

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!

Mortgage Brokers Christchurch - February's Property Gazette

Published by Scott Miller on Wednesday, February 06, 2013 in
        
                  Current Interest Rates as at 5 February 2013

Variable                 5.55%
6 Month Fixed        5.10%
1 Year Fixed          4.95%
2 Year Fixed          5.35%
3 Year Fixed          5.65%
4 Year Fixed          5.99%
5 Year Fixed          5.99%

Interest Rate Outlook

The summer heat has been wonderful, not only for holidays but to help keep the fire lit under the property market. We have seen house sale numbers and building consents at their highest since 2008. Despite taking a bit of a breather over December and January we have still seen both house sales and prices increase year on year from 2011 to 2012 at circa 8% & 6% respectively. By the way 2013 has started this does not look like easing up any time soon.

Building consents are really starting to make an impact as the Christchurch rebuild has well & truly kicked in. The Auckland Super City Council are trying to free up more land to address the housing shortage, although word from developers in the region note the bureaucracy within the Super City council is enough to dampen the desires of even the most passionate developer!

Despite the strength of our housing market our overall economic growth in 2013 will still be heavily dependent on international markets such as Europe & the US. The problem here is these countries continue to grapple with the fallout of the GFC (Global Financial Crisis of the last 4 years) leaving us particularly dependent on Asia’s demand for our primary produce. Essentially 2013 is shaping up as more of the same as 2012, best defined as “grumpy growth”, although, growth, nonetheless.

What about interest rates?


There continues to be speculation that interest rates will rise (purely because they have never been this low), however our outlook has them stable for the majority of 2013 (well at least at this stage). Having said that there still appears to be more value in the 1 or 2 year fixed rates than the variable interest rate. As such fixing for 1 or 2 years appears to offer the most value currently, although for those of you with sizable debt there is a lot of common sense in splitting your debt across 2 or 3 fixed periods to diversify your interest rate risk.

What's Hot

The “sweet spot” for banks in terms of interest rates seems to currently be around the 2 year fixed rate. For clients with Loan to Value ratios of less than 80% we are currently seeing rates as low as 4.99% for 2 years being offered.

Deal of the Month


Christmas clearly saw some generous family conversations take place as in January we had 2 lots of clients whereby Mum & Dad provided guarantees for first home buyers, the good news is that now days these guarantees are only limited to 15% of the value no of the loan not 100% - Call us we deliver!

Mortgage Brokers Christchurch - December's Property Gazette

Published by Scott Miller on Monday, December 03, 2012 in


Current Interest Rates as at 01 December 2012  

 Variable                     5.55%  
6 Month Fixed            4.95%
1 Year Fixed              4.95%
2 Year Fixed              5.15%
3 Year Fixed              5.60%
5 Year Fixed              5.99%

Interest Rate Outlook

Variable interest rates are at a record 48 year low while shorter term fixed rates such as 1 year are at an all-time low being the lowest they have ever been since fixed rates were introduced.
 
While house sales and building permit consents are at a 5 year high and the number of days for houses to sell at a record low of 31 days in some markets (namely Auckland and Christchurch).
 
On top of this the last 2 months have seen positive long term permanent immigration reversing the trend of the previous 12 months.
 
These positive trends are being supported by new government initiatives recently announced whereby government will be working closely with local councils to increase the amount of available land for residential use. Government has also committed to increased funding for roads, water & waste facilities to such development opportunities. This coupled with resource management reform will speed up the time it takes to obtain consents as well as provide more certainty for developers to act will certainly help increase the available stock and therefore affordability.
 
In terms of the most advisable interest rate option currently, there really aren’t any bad choices, although we seriously question the value of variable rates at present with all fixed rates out to 3 years the same or lower than the variable rate. Short term money of 6 or 12 months is as low as 4.95% which could be great for those trying to free up some extra cash for Christmas, although if possible the far smarter option is to take the opportunity of lower interest rates to make higher than required mortgage payments greatly reducing the term of your loan and thus the amount of interest you are charged – everyone’s circumstance are different so clients are best to talk to us.

What's Hot

The Christmas rush is on as many clients look to get themselves into a new property prior to Christmas. We’ve had a fantastic year in business and it is in no small way thanks to you & your support. Thanks again for your referrals they are greatly appreciated & not taken for granted.

Deal of the Month

We now have access to a genuine “Lo Doc” lender, whereby self-employed clients who are unable to provide up to date financials can still obtain a mortgage at competitive market rates, last month we helped 2 clients in this situation - Call us we deliver!

Christchurch Mortgage Brokers - November's Property Gazette

Published by Scott Miller on Tuesday, November 06, 2012 in

 

Current Interest Rates as at 05 November 2012

Variable               5.60%  
6 Month Fixed      4.95%
1 Year Fixed        4.95%
2 Year Fixed        5.15%
3 Year Fixed        5.60%
4 Year Fixed        5.99%
5 Year Fixed        5.99%
 

Interest Rate Outlook

The growth we enjoyed in the first half of 2012 has slowed somewhat with most economists predicting a slower second half to the year. The positive spin off to this is that inflation is being held low which should result in a stable interest rate outlook for the next 12 months.
 
While it is stable we certainly do not expect any easing of rates although we did notice that across the ditch they felt compelled to drop their rates slightly. The predicated down-turn in Australian looks like it is finally landing.
The slow-down of the Australian economy, together with the unstable environment in Europe should see us return to positive migration numbers in 2013 which will help push the New Zealand economy in the right direction.
 
Additionally, the rural sector looks to be in for another strong year with many international growing markets facing difficult conditions which will see demand for our produce and dairy provide healthy returns to farmers which will flow through the entire NZ economy.
The housing market continues to suffer from contrasting forces, on-going low interest rates and a lack of quality stock sees prices continue to rise and days to sell shorten, however a genuine lack of stock in the hot Auckland and Christchurch markets is really holding the market back.
 
With the recent merge of NBNZ into the ANZ competition for your mortgage amongst the banks continues to heat up. There are all sorts of weird and wonderful deals being thrown at consumers from Galaxy tablets to cold hard cash and we are seeing interest rates at sub 5% levels for the right clients.
 
We still see the sweet spot in the interest rate cycle as the 2 year point, although for the more conservative clients they seem happy to pay mid 5% and lock it in for a bit longer. Our advice is to talk to us as everyone’s circumstances are different and you really need to make your decision based on your own situation.
 

What’s Hot

When a bank loses a client they call it “churn”, when they gain one from another bank they call it “refinance”, the gloves are off and we are seeing some amazing price deals both interest rate wise and in contribution to costs, call us with your client’s needs we are securing great deals!
 

Deal of the Month

In some instances registered valuations are required, in others they are not, this can actually be the difference between being able to do a deal and not, last month we saved a house purchase for all by financing it with no valuation - Call us we deliver!

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!

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!

Chistchurch Mortgage Broker - Property Gazette August

Published by Scott Miller on Thursday, August 02, 2012 in

 
Current Interest Rates as at 02 August 2012  
Variable              5.60%  
6 Month Fixed     4.99%
1 Year Fixed        5.15%
2 Year Fixed        5.35%
3 Year Fixed        5.60%
4 year Fixed        5.79%
5 Year Fixed        5.99%
 

Interest Rate Outlook

Despite record low mortgage interest rates, sales volumes remain constrained by relatively low levels of stock on the property market. With buyers competing for a limited quantity of available properties, the days to sell have fallen close to a three year low, with prices continuing to trend higher.

Sales volumes in all regions of New Zealand (bar one) are above the levels seen for the same period last year with Auckland and Canterbury remain the hotspots of growth. Strong mortgage approvals suggest momentum in the market will continue. The recovery in residential building activity from historical low levels is also showing similar regional demand in Auckland and Canterbury. Migration numbers remain volatile, but a turnaround in net inflows will support domestic spending and the housing market.

The residential market is delicately poised with low numbers of properties for sale and rising prices demonstrating competing tensions within the housing market. Support continues to come from record low interest rates and aggressive competition across all of New Zealand’s mainstream lenders who are literally buying business at present. However growth continues to be slightly constrained by affordability and consumers desire to reduce their debt while rates are low.

There have been small changes to fixed mortgage rates for terms of 2 years and less over the past month. These changes have "smoothed out" the mortgage yield curve which now has the 2 year rate as its low point. By contrast there have been no changes to the floating rate or fixed rates for terms of 3 years or longer.

In our view the RBNZ is unlikely to cut the OCR for the balance of 2012. However with 6 month to 2 year fixed rates all lower than the floating rate, borrowers have the ability to "lock in" interest rate cuts by fixing. We therefore believe it makes sense to fix for 2 years – 3 years, not in an attempt to "hide" from the possibility that the RBNZ might raise rates, but simply to save money.


What’s Hot

Specials – depending on the balance of the portfolio of a bank they often run a “special” to try and attract money for a specific term. As an example we have one bank offering 4 year fixed @ 5.79% and a completely different bank offering 5.99% for 5 years fixed – Please call me for more details.

Deal of the Month

We had a client stuck between the purchase of their new dream home and the sale of their pre-loved dwelling, with interest rates at a record low we were able to structure a bridging loan for them that was no more expensive than what they were paying out monthly - Call us we deliver!

Mortgage Broker Christchurch - Property Gazette July

Published by Scott Miller on Tuesday, July 03, 2012 in


Current Interest Rates as at 02 July 2012
Variable 5.50%
6 Month Fixed 5.25%
1 Year Fixed 4.99%
2 Year Fixed 5.35%
3 Year Fixed 5.60%
5 Year Fixed 5.99%

Interest Rate Outlook

Activity in the property market continues to show positive signs of improvement, particularly in Auckland and Christchurch. However, there are some mixed signals that continue to permeate across the market. Client debt serviceability and a net migration outflow is keeping strong growth across New Zealand at bay.

Low interest rates remain the key stimulating factor, though consumers are still moving cautiously with many still focusing on reducing their debt while interest rates are low. Aggressive competition amongst banks for business is allowing us to negotiate substantial interest rate discounts for our clients.

The New Zealand economy remains caught between positive factors such as low interest rates, the Auckland housing market, and Christchurch’s earthquake rebuild versus headwinds from a volatile and worrying global scene. This alongside a weak national balance sheet is providing mixed economic signals. Meanwhile as the unemployment rate continues to drift down over the coming year we should see an improving and evolving labour market, helping households to remain focused on rebuilding their savings buffer.

Fixed mortgage rates edged lower this month, with floating rates at levels not seen for 50 years. The 1 year rate is still the cheapest, and all fixed rates up to 3 years remain at, or below the floating rate. Given these considerations, we see merit in fixing; anywhere from 1 – 3 years.

What’s Hot

There is currently quite a disparity between banks and their individual credit appetites; we are seeing regular examples of one bank declining a client with the next bank happy to write the loan. Often this is driven by the weighted Loan to Value Ratio in a bank’s portfolio, as such your clients are best to talk to us as “No” does not always mean “No” - Refer to us!

Deal of the Month

Last month we had a self-employed borrower who had recently signed a large contract, significantly boosting their income going forward, with the re-emergence of Lo Doc lending we were able to help fund this guy into a new house which he had been told was not possible – he was delighted when we got him sorted (Not to mention the Referring agent) - Call us we deliver!

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!

Mortgage Broker Christchurch - Lending Criteria

Published by Scott Miller on Thursday, June 07, 2012 in

                Lending Criteria

 

Over the last couple of weeks I have noticed a change in the appetite for lending over 80%.

Only 2 weeks ago lenders were offering substantial contributions to legal fees, waive Lenders Mortgage Insurance, and providing large discounts to clients placing as little as 10% or even 5% as a deposit on a property. What are the same lenders offering now for these types of loans………. almost nothing.

So what’s happened?

What I believe has happened (although I do not know for sure) is the lenders have been given the hard word from the Reserve Bank. My guess is they have been told to balance their over 80% Loan to Value Ratio loans with their under 80% Loan to Value Ratio loans.

In New Zealand when a loan has a Loan to Value Ratio of above 80% the lenders need to pay for Lenders Mortgage Insurance (every lender has their own name for this insurance, so you may be familiar with it under a different name). This is to insure themselves and not the person lending the money.

When the lender needs to secure funds from overseas they have to declare their level of loans with Lenders Mortgage Insurance (or mortgages that have a Loan to Value Ratio of higher than 80%). This is asked by the overseas lender so they can assess the New Zealand lenders level of higher risk loans and charge an appropriate interest rate for the funds required.

It is here that the Reserve Bank is applying pressure. With Europe in trouble, America’s spending coming back to haunt them, and China and Australia’s economies slowing the Reserve Bank wants New Zealand lenders to look in good shape if we head into another Global Financial Crisis (GFC). It was in the last GFC that showed the world how quickly funds for lending dried up.

So how does this affect you?

If you currently have a preapproval for a loan where your deposit is less than 20%, I STRONGLY recommend you purchase a property before the preapproval runs out of time. I say this because what is being offered in your existing preapproval will not be available if you need to reapply because you ran out of time.

If you are looking at purchasing a property with a deposit of less than 20% then contact your mortgage broker first as there are some products still available in the market.

This could be a flash in the pan, but something tells me it’s something a little more serious. At Advanced Mortgage Solutions we are always here to help so please feel free to contact us if you need assistance.


Contact us to get free personal mortgage and home loan advice








Captcha Image

For discounted interest rates on existing loans

100% New Zealand
SBS BankSovereignTowerWestpacAIAAMPANZAsteronASBAvanti Finance
Liberty FinanceThe National BankPartners LifePublic TrustDBR Property FinanceFidelity LifeGeneral FinanceOnePathBetter Mortgage ManagementThe Co-operative Bank