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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.

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.

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!

Property Gazette - April

Published by Scott Miller on Thursday, April 12, 2012 in

           Client News - April 2012

 Welcome to April’s Property Gazette.

This month has seen the completion of Advanced Mortgage Solutions Facebook page. Feel free to have a look around our page by clicking here – please remember to push the “like” button as this helps us get found!


Interest Rate Outlook

We could be excused from feeling like it is a case of “last one out turn out the lights” with the outflow of migration being the highest it has been in NZ since 2001. Yes, there is an outpouring to the perceived ‘lucky country’ in Australia, with some 38,000 leaving our shores last year, however this is offset somewhat by the inflow of 35,000 from other parts of the world, creating only a slight migration deficit - which is nowhere as bad as it may appear.

The outflow of Kiwis to Australia is certainly contributing to the stalling of our economy but the reality is nowhere near as bad as the perception. Of course, one of the things that our Kiwi cousins need to consider is the higher cost of property and living on the other side of the ditch, and while employment opportunities may be more plentiful the cost of getting into property can offset this benefit.

So we have immigration working against us and there is still a focus from Kiwis on deleveraging their balance sheet (or in layman’s terms repaying debt before entering into new purchases) which together with a continued lack of housing stock attributes to holding our growth back.

However, the stock that is hitting the Real Estate market is certainly moving quickly, particularly in Auckland and Christchurch, where average days to sell in both areas is now under 30, which is the lowest in over 2 years.

In relation to interest rates, we continue to enjoy historic lows which are helping with mortgage affordability. There is currently little to no difference between floating and 2 year fixed money and it is only if clients look to fix for longer than 2 years that there is an increase in interest rates carrying a small cost for the extra certainty of a long term fixed rate.

So what to do? It really depends on your personal circumstances, however we do see great value in being able to lock in low-to-mid 5% rates for 2 to 3 years. The only caveat is that you need to be 100% certain that you are not looking to sell your house or make large lump sum principal reductions during the fixed period.

Please contact me to go over your personal circumstances as interest rates have never been lower and are not likely to become lower than they are today.


Authorised v Registered

You may be aware that the financial services industry is now regulated - which is a great thing for you the consumer as it is all about protecting your rights.

There are two categories of Advisers, Authorised & Registered. Essentially, the main difference between the two is that only Authorised Advisers can give you advice in relation to Investment products while both Authorised & Registered Advisers can provide advice in the areas of Mortgages, debt and Insurance.

The most important thing to know is I am fully registered with the Government, (it is illegal to operate and not be registered). To check this out just go to www.fspr.org.nz  and type in Scott Miller. This will quickly confirm that I am able to approach New Zealand lenders on your behalf.


Reduce Payments or Keep Them the Same?

This message is definitely getting through, and more and more of our clients now enlist us to negotiate with their bank on expiry of their fixed interest rate. It is part of our on-going service and costs you absolutely nothing - in fact, the opposite applies in that we are able to negotiate the very best rate for you from your bank.

A question asked of us regularly when a client’s interest rate reduces is “should I reduce my payments or keep them the same?” If you can afford to keep them the same this is definitely a wise thing to do. Let’s look at a simple example to illustrate this.

We have a client with a $200,000.00 mortgage over a 30 year term currently on an interest rate of 6.50%, paying $1264.00 per month. If this rate expires today it is safe to assume we could re-fix in for at least 5.50%. This could drop the payments to $1135.00 per month -or if we kept the payments the same at $1264.00 this would reduce the term from 30 years to just over 24 years and save $51,921.00 in interest – not a bad option for most of us!

As mentioned above please contact me while interest rates are low.


Does a Line of Credit Work?

We are often asked by our clients whether a line of credit loan is a good option for them with their mortgage. Of course the answer is that it does depend on your own set of circumstances.

The main benefit of using a line of credit is that it allows you to run your income through your mortgage (while not losing access to the funds) and because banks calculate interest on a daily balance, any time funds offset your mortgage balance (as an example in the form of your wages) it will save you interest.

Often, the better option is to have only a portion of your mortgage on line of credit, with the balance on a standard principal & interest loan. This provides the flexibility many clients want, the benefit of being able to run your income through your loan, and the ability to enjoy the very sharp fixed rates that are currently available for principal & interest loans.

You are best to talk to me to understand the benefits of a line of credit and whether or not this option is best for your own circumstances.  
   

Property Gazette - March

Published by Scott Miller on Monday, March 12, 2012 in

 
Current Interest Rates as at 1 March 2012

Variable                   5.60%  

6 Month Fixed          5.40%
1 Year Fixed            5.45%
2 Year Fixed            5.49%
3 Year Fixed            5.85%
5 Year Fixed            6.65%
 
Interest Rate Outlook
 
As mortgage interest rates remain low they continue to provide fuel to the property
market. January house sales volumes lifted for the third successive month, with strong sale prices offset by an on-going lack of available houses on the market. This shortage is continuing to drive prices up.

Tempering the growth is the unstable employment market and continuing desire of households to pay down debt. These factors together with the uncertainty created by overseas economies will help damper a major boom in the property market, however overall it is predicted house price will continue to increase albeit at a slower steady rate. The possible exception to this is Christchurch where house and rent prices are rapidly increasing.


While the Reserve Bank do acknowledge that the property market is showing healthy signs of recovery they still have their focus centred on the European debt crisis, and all the noise coming from the Reserve Bank indicates that any interest rate movements to our OCR will not occur until the back half of this year. There are however some extremely low fixed interest rates available now that cannot be ignored. I believe for some people now is a great time to look at options – please read on for more information.


Mortgage rates eased further last month especially in the longer term 3 – 5 year fixed rates. Although this has made it cheaper to fix for 3, 4 and 5 year terms, these rates are still relatively slightly higher than the current shorter term rates. Similar to last month there is very little difference between floating rates and 1 – 2 year fixed rates - as such we still believe that the best options currently in the market are to either float, look to fix for 2 years or take a combination of both, splitting your debt.


Please contact me for a free assessment of weather these low interest rates are something that would help lower your mortgage costs in the short and long term – there are some real savings to be made at the moment.

 
What’s Hot

Free Money – get it now! The banks are currently running some crazy incentives with some giving away as much as $1,000.00 as an enticement for clients to take their mortgage with them. You will be surprised by the attractiveness of what we can get for you - Refer your clients now!

 

Deal of the Month

Last month’s client was a NZ citizen working as a “Miner” in Australia. He was trying to buy a home to live in and was using some equity in an existing block of land. After being frustrated through other sources he found his way to us and we got him sorted - call us we deliver!

Interviewed by The Advisor - Emily Mclean

Published by Scott Miller on Thursday, March 08, 2012 in

                         From shaky grounds to solid rewards

 

Since enduring a devastating earthquake a little over a year ago, the Christchurch property market has been on shaky ground. As thousands of residents have sought to evacuate the city and properties have been deemed un-liveable, mortgage brokers have been forced to find new and opportune ways in which to market their businesses.

 

Since the disaster social media has been become a crucial tool in marketing. Whilst businesses were forced to move locations an online site provided an unmovable medium. This allowed brokers a direct link to their customers whilst their physical location was in the midst of chaos and relocation. 

 

Director of Advanced Mortgage Solutions, Scott Vaughn Miller, said moving into the social media industry was hugely beneficial. “I used a bit of everything, Facebook, Twitter, and linked-in as well as my own website. At least fifty percent of the referrals I have now come from clients seeing me online”. As a result of this, Miller’s business has now increased to the point where he is taking on new staff and referring work to other brokers.

 

Director of Bev Dickey Mortgages, Bev Dickey, agrees with Miller. She said her website has been invaluable over the last year. “I am reaping the rewards of a great website. This is because it’s approachable with no babble and has the right colours and layout. My advice to any broker is to get a great web designer.”

 

The great saying ‘think globally, act locally’, has re-emerged following the quake. Mortgage brokers are realising the power that a community can generate and brokers such as Miller and Dickey are using this to their advantage.

 

“Advertising locally and being a visible part of the local community means clients feel one step closer to their broker…it’s therefore easier to quickly gain that level of trust that’s vital” said Dickey. She reinforces that gaining trust as a broker is crucial as people then feel comfortable opening up about their whole financial situation.

 

According to Miller though, gaining a step up on the local competition comes down to referrals from pre-warmed leads. “I approached lawyers and accountants who already had a large sphere of influence over the local community. They were therefore able to refer large numbers of their trusted clients to me”.

 

While Christchurch residents are ‘keeping on keeping on’, so are the mortgage brokers. “Keep on persisting is the best piece of advice I would give any broker seeking to expand their business” said Miller.

 

Dickey encourages every broker to take a good look at what is and what isn’t working for them. “If it’s not working for you then change it” she said.

 

In the midst of a city in constant turmoil, persistence and a willingness to change is something these two brokers have had to take on board in increasing measure - but their businesses are reaping the rewards.

 

Emily Mclean - The Adviser

Property Gazette - February

Published by Scott Miller on Monday, February 06, 2012 in

        

    Welcome to February's edition of AMS's Property Gazette.

I would like to start by announcing the Advanced Mortgage Solutions has moved! We have now opened an office at 6 Burdale Street, Riccarton Christchurch.

Please click here to see our new address on Google Maps.

The process of finding an office has been a while in the making as the recent earthquakes in Christchurch made it harder to find suitable office space. Please feel free to drop by if you are in the area - I would love to show you around.

  What's happening in February?

Current interest Rates as at 1 February 2012

  Variable                 5.60%  
6 Month Fixed         5.45%
1 Year Fixed            5.55%
2 Year Fixed            5.65%
3 Year Fixed            6.10%
5 Year Fixed            6.90%

Interest Rate Outlook

It would appear that 2012 has kicked off with some continued momentum from late last year as have noticed a broadening trend of being a lot busier over the last 4-5 months.

December continued on the strong trend of November in house sales, with consecutive strong months seeing increases in sales of circa 5% each month. It would appear the extended period of historic low interest rates is finally starting to push some confidence across to property purchases. This, together with the nation waking from its rugby world cup hangover, is driving the strongest level of activity we have seen for a couple of years now.


The Real Estate market is still being held back though by a genuine lack of quality stock across the country (with a particular emphasis in Christchurch) and this is seeing the average days to sell a house drop (now down to 39 days). We believe this will continue to ease further over coming months, giving the market some momentum.

Approximately 60% of Kiwis are currently sitting on a variable rate mortgage, which gives the Reserve Bank great confidence that they can actually influence consumer behaviour with interest rate movements if and when they have to. That said, they have signalled that they do not expect to have to push interest rates up until the 2nd half of this year.

As the 1 & 2 year rates fell in the latter part of 2011, we now see this flattening from the variable rate through to the 2 year fixed rate. As such there is little to no difference between the current variable and 2 year fixed rates. Given that we anticipate small increase in variable money later this year, the current 2 year fixed rate holds appeal for us as a sound borrowing strategy - or for the slightly more adventurous splitting the funding into 2 accounts of part 2 year fixed and part variable will ensure not missing out on any variable rate discounts if they were to come on offer. All in all, quite an attractive time to borrow money!          

What's Hot

2012 has kicked off right where 2011 finished. Competition is hot among the banks for business and right now the rate they are all sharpening is the 2 year fixed. We are seeing cases of 2 year rates being offered as low as 5.49% - that is cheap money! Refer your clients now!


Deal of the Month

Last month we helped a more unusual client request, coming from a 70 year old gent buying a modern retirement unit. He was short of the full purchase price and we were able to fund him on an equity release loan for the shortfall, not requiring any monthly payments - call us we deliver!

 

Property Gazette - December

Published by Scott Miller on Tuesday, December 06, 2011 in

                        Welcome to December's edition of AMS's Property Gazette.

Well here we are at the end of another year, and what a year it has been. Earthquakes, mine explosions, rowing world champs, rugby world cup, shipwrecks, and a general election make up an extreme year of highs and lows.

On a personal note I would like to say thank you to all those who have helped and supported the Canterbury earthquake appeals, without your help many of us Cantabrians would be in a far worse position than we find ourselves.

On a brighter note New Zealand finds itself in the middle of a mini pricing war between the mainstream lenders which is bringing all sorts of goodies for us consumers – please feel free to contact me to find out how you can benefit.

So onto the economic news in New Zealand and around the world.

Current Interest Rates as at 5 December 2011

Variable                5.60%

6 Month Fixed        5.59%

1 Year Fixed           5.55%

2 Year Fixed           5.65%

3 Year Fixed           5.95%

5 Year Fixed           6.95%

 

Interest Rate Outlook

Don’t turn on the news if you want any light relief – even though we got through the election rather painlessly we are still subjected to painful scenes every night. Most of which come from overseas and it is not uncommon to see 3 or more clips of rioting or fighting amongst citizens of the same country.

The financial stress that the world economy is under adds fuel to simmering tensions that run through many countries and right now every day it appears that Europe gets worse, as economic instability spreads from Greece, though Italy, France and even on to the previous impregnable Germany. It is at times like this that the tyranny of distance can be our friend, although while we are removed from the violence we see, we are not removed from the economic pressure the bad debt crisis in Europe is generating.

Fortunately for us all, this pressure has currently resulted in an easing of long term fixed rates and for the first time in some months we saw a reduction of interest rates in the 2 & 3 year fixed periods. How long this will last or whether it will continue is too difficult to know, however it now sees Variable and Fixed Interest rates closer than they have been for some time.

As such, the question that is now common, is should I fix my rates now? There is no right or wrong answer to this question although with 2 year fixed rates now matching variable there is no longer a dollar cost in buying some stability. It is just some flexibility that clients will forgo by locking in now.

The question of will interest rates go even lower is also a hard one to answer, while we are at historic low rates there is no guarantee that if the above European issues worsen that we will not see further interest rate cuts across the world. Given there is so much uncertainty perhaps the best strategy could be splitting your loan into part variable and part fixed at a mid-term rate.    

What’s Hot

It is the season to be silly and the banks are obliging with some crazy deals in the market right now. We are seeing big interest rate discounts off already sharp rates and legal fee contributions exceeding $1,000.00 regularly, talk to us, you will be surprised what we can get from your bank.

Deal of the Month


We’ve seen it before, clients with a history of excellent credit and all of a sudden an event occurs in their life, it may the death of a loved one or business venture failed, all of a sudden their credit is shot – last month we helped a client in this position to secure a home - call us we deliver!

Property Gazette - November

Published by Scott Miller on Thursday, November 03, 2011 in

 

  Welcome to November's edition of AMS's Property Gazette.

So the Rugby World Cup has been won by the All Blacks! Congratulations New Zealand and congratulations the All Blacks, what a wonderful display you put on for us. I don’t know about you but that was one of the most nerve raking games I have ever watched. However a 1 point win is as good as a 20 point win once the final whistle is blown.

It has been widely reported that New Zealand put on a fantastic show and that once again we have been pushed into the world’s spotlight. I believe the benefits of hosting the Rugby World Cup will filter through to our economy for many years to come.

So onto the economic news in New Zealand and around the world.



Current Interest Rates as at 1 November 2011
 
Variable                 5.60%  
6 Month Fixed        5.59%
1 Year Fixed           5.59%
2 Year Fixed           5.89%
3 Year Fixed           6.45%
5 Year Fixed           7.25%
 
Interest Rate Outlook

The world, in economic terms has been doing it tuff now for several years. To once again see more prosperous times, it’s going to take the sum of many moving parts working together to make a difference. There are still those variables we cannot control, (think Referees here) such as the state of the European & American economies, which unfortunately our banks still have to approach for their off-shore funding. We will always be susceptible to their financial stability but more and more New Zealand lenders are trying to limit the amount they need to borrow from offshore, (similar to taking the referees decisions out of the game).

Internally, our economic engine continues to be our rural sector and while commodity prices have come back somewhat the market is still strong. The rural surge is timed nicely with the historically low interest rates allowing farmers to reduce debt, freeing up some internal bank capital. Our beautiful country is also set for a tourism boom on the back of what the world has just seen and this should assist the retail sector continue their strong year on the back of RWC.

So there appears to be money flowing in our economy, we just need to ensure this is best utilised, not unlike the farmers, reduction of debt should possibly be many individual’s focus.

Sustained low interest rates are also helping the housing sector as we see the average days to sell houses continue to drop and many examples of multiple offers being placed properties, a momentum we believe will carry through the traditionally buoyant summer months.  

As for a current borrowing strategy, variable rates look set to remain at current levels through until mid-2012, accordingly, the floating rate looks the best option right now, although 1 year & 18 month rates are practically the same and provide some nice stability of payment. For those prepared to pay a small margin of 0.25% - 0.50% you can now lock in for 2 years.
 
What’s Hot

The annual Spring race for asset growth is on seeing the banks all coming out with some weird & wonderful incentives to convince consumers that they are the best option. The most innovative being a replica RWC if you take a mortgage (and yes we have access).
 
Deal of the Month

Equity solves most problems for banks, last month we funded a lady into a house whereby she had only been in her start up business for 4 months, however with 50% deposit we were able to structure the deal by putting 1 years payments aside and securing the house - call us we deliver!


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