Our flat lining OCR

From this morning's OCR annoucement by Govenor Bollard it seems our OCR is to flat line at 2.5% for just a little bit longer. Welcome news for home owners that are currently sitting on the floating rate.

The good news as quoted by Governor Bollard "the New Zealand economy has been doing better than many others... domestic economic activity has surprised on the upside and capacity usage appears to have increased. Continued high export commodity prices and in time reconstruction in Canterbury are expected to provide impetus to demand over the projected horizon."

On the other hand the bad news as quoted "the outlook for New Zealand's trading partners has deteriorated markedly. There is now a real risk that global economic activity slows sharply."

What we need to watch is the deterioration within the global financial market. Sovereign debt concerns in Europe and the, once again, weakened global outlook have caused international bank funding markets to tighten... if this continues bank funding costs for us down under will increase!

In this latest announcement Governor Bollard says that we only need global developments to have a 'mild' impact on NZ and it is likely the OCR will need to increase!

Each and everytime there is an annoucement the FIXED vs. FLOATING debate rises amongst us all...

Things to consider in the Fixed vs Floating debate:

• If interest rates rise do you have money in your budget to cover it?



• Are you on a fixed income and financially stretched as it is?



• Do you have the income to pay extra off your mortgage now?



• Do you want to repay your mortgage as quickly as possible?



• Is certainty of your budget critical?



• If interest rates increase - how far could your budget stretch?

Doing some simple calculations now may help you better understand how far your budget can stretch and what the numbers do add up to in real terms like: what does a 1% increase mean to my monthly repayments - a lot or a little? What is the term of my mortgage - can I extend it and what will that reduce my repayment to?

ADVICE
When in need of advice on your mortgage it comes down to what is right for you and your family - a good mortgage adviser should always make recommendations based on your needs and wants - the final decision to fix, float or go interest only is always yours!

Free advice is only a freephone call away, for a chat call us anytime on 0800 823 823.

Disclosure Statement available on request and free of charge.

Attention - Self Employed

This is something that has become a huge part of the services we're now offering through our sister company Insurance People and we just had to share it with all our Mortgage People followers because the results have been quite incredible...

It all starts with the clear message of who ... wants to save money on their ACC Levies?

If you are self employed or planning to become self employed you'll know that one cost you can not avoid is your ACC Levies... for most its like one of those 'grudge' costs, something we have no choice on - or do you?

Yes. Actually, when it comes to your ACC levies you do have a choice to decrease or increase your levies. Its called ACC CoverPlus Extra and our team of advisers are now fully trained and skilled in this area.

As each persons situation is completely different to the next, we're encouraging all self employed to make the call, contact us for a chat to see if your ACC is right for your current circumstances.

To find out more - click here to request your ACC Review.

PS: One of our first ACC reviews identified an incorrect classification code - we managed to get $4,000 back for the client from over paid levies! Now thats something that we don't hear of very often, and we can't promise to do this for everyone - but it is proving valuable for all our clients to check their options!

DO YOU KNOW...

• How much you pay in levies?


• The amount you'll receive in case of an accident?


• What 'offsets' means and the effect this may have on you?


• If you have the right ACC job classification code? If its wrong, it could be costing you!

THINGS YOU SHOULD KNOW...

• ACC will only pay out if you have an accident, it does not cover illness.


• Mortgage Repayment insurance covers you for illness and accident; and does not affect your ACC.


• Income Protection gives you choice and certainty of income if unable to work due to illness and accident.


• You do have a choice on how much you pay in ACC Levies.


• We have direct access to ACC and can now review your ACC.


• Our services are free and no obligation!

Do you want to ask a question? Email us.

Did you find this information helpful? Please PASS IT ON to anyone you know in business.

Mortgage People "as seen on TV"

Check out our TV advert - currently showing on TV One and TV Two during September.

• Are you a first home buyer?


• Looking to refinance your current mortgage?


• Need to consolidate debt?

What ever your need the team at Mortgage People can help you out. Contact us anytime to discuss your needs - freephone 0800 823 823.

Don't forget your friends and family - know anyone who is in need of help with their mortgage? Forward this blog and our details...

Disclosure Statement available on request and free of charge.