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Shopping around...

Competition amongst the banks is heating up.

... and as a result homeowners with mortgages are being advised to shop around now that competition among banks is heating up and we see interest rates dropping.

ANZ and National have dropped their one-year fixed rate to the lowest it's been in 17 years, and more banks are expected to follow.

Executive director at the Commission for Financial Literacy & Retirement Income, David Kneebone says it's a good time for consumers, particularly those on floating rates, to test where their bank is at.

"I think now it's fair to say that the balance has swung back to consumers, and this is a good time for people to exercise the power that they have at their hands, and barter and shop around with banks and see what kind of deal you can get."
David Kneebone says now's the time to change lenders or at least think about it.


With this in mind, this is where you need a good mortgage adviser ...
True story: a Mortgage People adviser negotiated a 1 year fixed rate of 4.85% on a $300,000 home loan plus $2,000 towards costs for a client!


If you haven't used a mortgage broker before - what they do is simple, we get you the best possible mortgage that suits your lifestyle. Mortgage advisers negotiate with the lender on rate, contribution to costs and structure - so that your next or first home loan suits you and doesn't in anyway prevent you from enjoying life!

Alternatively, if you want to fast track repaying your mortgage, you need a good debt management programme that keeps you on the right path. In this instance you need a specialist mortgage adviser who can work through options that some mortgage advisers and banks just can not provide.

For a coffee and chat about your circumstances or to enlist a specialist mortgage adviser who will check the market out on your behalf freephone 0800 823 823 or email now!

Disclosure statement available free of charge on request.

OCR holds at 2.50%

The Reserve Bank today left the Official Cash Rate (OCR) unchanged at 2.5%, in a short statement Dr Bollard confirmed "For now it is appropriate for the OCR to remain at 2.5%".

"The domestic economy is showing signs of recovery...
"Housing market activity continues to increase...
"A recovery in building activity appears to be underway - as forecast...
"That recovery will strengthen as repairs and reconstruction in Canterbury pick up later in the year."

The main concern for the Reserve Bank appears to be offshore "the global outlook remains of concern. Near-term indicators have moderated and financial market sentiment is still fragile."

"The New Zealand dollar has stayed elevated despite recent falls in commodity prices. Should the exchange rate remain strong without anything else changing, the Bank would need to reassess the outlook for monetary policy settings."

But what we don't know is what that reassessment may involve - as previously indicated a longer period of no change to the OCR; or whether they would see a cut to the rate.

The next Monetary Policy and OCR rate annoucement is 14th June.

If you are interested in reading past announements and statements from the Reserve Bank click here

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If you want to speak with a mortgage adviser about your circumstances then click here to meet the Mortgage People team or freephone 0800 823 823

To fix or not to fix

We are certainly being asked that question time and time again at the moment and guess what we don’t have a crystal ball that gives us the answer so the next best thing to do is to weigh up your priorities and choose the rate and the term that best suits you. So with that in mind here are some things to ponder over...

WHY CHOOSE A FIXED RATE?

A fixed rate means you’ll know exactly what your repayments are and you can budget with certainty.

WHY CHOOSE A FLOATING RATE?

Right now floating rates are lower than fixed and the cheapest way to borrow money, but will they stay that way… probably not. They are also very flexible and allow extra or early repayment to be made without penalty.

WHAT CAN YOU AFFORD?

Think about that when planning your budget and also think about the impact of rate increases on your budget and lifestyle.

WHATS THE COST OF CERTAINTY?

It’s the difference between what you will pay on a fixed rate and what you are currently paying on floating.

WHAT ARE YOUR PLANS?

Your personal plans for the future can give you a clue as to what to do, for instance if you are likely to be in a position to make a lump sum payment against your mortgage then it’s better to stay floating on that portion SO here is something to consider “A SPLIT MORTGAGE” by splitting between fixed and floating you can strike a happy balance… talk to us!

THE ECONOMIC OUTLOOK here are the facts…

• In its January review, the Reserve Bank of New Zealand (RBNZ) held the Official Cash Rate (OCR) at 2.50%, as was expected.


• Increases in the OCR are largely dependent on the global outlook and specifically developments in Europe.


• With all the global uncertainty, at this stage the bank economists expect the RBNZ to put off any increase in the OCR until late 2012.


• It is widely expected that current floating rates will go up in line with expected OCR increases.


• By the end of next year it is expected that the floating mortgage rate will be about 1.5% higher than the current rate.
  

So, the table at the top is to help you decide on what to do and please feel free to call us for advice on splitting your mortgage...

freephone 0800 823 823 or click here to view our team

The views expressed in the above blog are those of the author as at the date of the blog and are based on information and sources believed but not warranted to be correct. Neither Mortgage People or the writer accepts any liability for any loss or damage whatsoever that may directly or indirectly result from any information or omission contained in this blog.

Mortgage Help

An article in today’s NZ Herald caught my eye it was about mortgagee sales and quoted the banking ombudsman Deborah Bartell’s who said that “complaints about mortgage finance had almost doubled since before the financial crisis”.

The thing we want to stress here to all existing home owners is that peoples circumstances change all the time, and sometimes without warning the unexpected happens like redundancy, so if you find yourself in this situation talk to your mortgage broker straight away - and let us see what we can do to help, in most situations there is a solution. This might involve us talking to the bank for you and restructuring your debt to give you some breathing space or it might involve refinancing your current mortgages to make the payments easier.

Mortgage People have honestly assisted many clients who have experienced difficulties sometimes just to give them the time they need to sell their property in an orderly fashion and not have the bank do it in a mortgagee sale situation where often the sale price is much less.

The other thing is that the 31st March has just rolled by and for self employed people that’s tax time, once again if you don’t have the funds available see us about a potential restructure of your mortgages the trick once again is to chat to us early not later when the penalties start to kick in!

If your debt - mortgage, personal loans, business loans, car loans, hire purchases; is compromising your lifestlye, then its time to take control and talk to a Mortgage People broker today - find out all your options.

freephone 0800 823 823 or email us - enquiries@mortgagepeople.co.nz

Written by Glenn Christie, Director - Mortgage People Ltd

New Give Way Rules

Next Sunday, the 25th of March 2012 is when the new Give Way rules in New Zealand take effect.
Are you prepared? Are you insured?

Whether you've been driving from way back when you could get your Licence at 15 and off you went, or if you've just got your Restricted or Full Licence these changes require you to take a moment and think before you move forward from an intersection!

We all need to retrain our brains on the "give way to your right" rule that has been programmed into us all!

If you haven't already, check out the NZTA's website

here, there are simple illustrations that actually make it seem quite clear... although it will be a different story when you are in your car and on "auto pilot", doing your usual drive to drop the kids at school, get to work, the supermarket or the gym.

So, where does this leave you with your car insurance? If you are "at fault" then its your excess thats going to be hit and possibly your no claims bonus!

When was the last time you checked your car insurance?

Or, perhaps you are looking to change cars. If you need a top up on your mortgage to fund your next car purchase, contact us today our services are free.

Mortgage People & Insurance People

freephone 0800 823 823 email us

OCR left at 2.5%

The Reserve bank has left the OCR (Official Cash Rate) at an all time low of 2.5% and has signalled that there will not be a rise until this year's December quarter. They have also indicated that there potentially will be only two more increases over the next two years, so floating interest rates look to remain low.

Inflation has also dropped below the midpoint of the banks 1 - 3 per cent target range and inflation expectations have also fallen sharply. However, not everyone seems to agree with the Reserve Bank, one bank economist believes the rebuilding of Christchurch, the back log of leaky homes requiring repair and the pent up demand for property in Auckland after a slump in residential building (something we have indicated before) will add to inflationary pressures over the next few years. What does this mean, well we could see rising house prices and a construction boom coming our way as we have done in the past.

If you would like to have a chat with a mortgage expert who deals with most main banks and many other lenders about your situation then click here or call now on freephone 0800 823 823

Written by Glenn Christie, Director - Mortgage People

Disclosure Statement available on request, free of charge.