A Great Blog

Seasons Greetings from Mortgage People

2011-12-18T18:14:00.001-08:00

As another year nears an end, looking back reveals a period of mixed signals, the lows of an economic crisis, the highs of an exciting 6 weeks of world cup rugby and then the election! What will we all do now?

Thanks to you all for your support and for helping to make this year rewarding from allowing our team do what they enjoy most ~ making sure you are financially sorted & well protected.

Merry Christmas, happy & safe holidays to you and your family.
We look forward to seeing you in 2012.

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Office Hours
Below are the office hours over the christmas period; in case of emergency feel free to call freephone 0800 823 823 anytime for further information.

Friday 23rd December ~ Closing 3pm
Wednesday 28th to Tuesday 3rd January ~ Closed
Back to business from Wednesday 4th January 2012 ~ 8.30am to 5pm
Office Freephone 0800 823 823

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Fire & General Insurance - Claims & Help
For AON Stylecover Insurance Claims or Queries freephone 0800 505 152
For Lumley Insurance Claims or Queries freephone 0800 781 782

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Contact your adviser
To find your mortgage adviser's details click here

Taking advice from friends who mean well....

2011-12-12T13:50:00.000-08:00

Breakfast out is always a treat. Well nearly always……
"We were seated next to two ladies, who didn’t seem to mind who heard their conversation as they didn’t regulate their voices at all. That’s no big deal; I can do a pretty good job of toning out other conversations. Some words do trigger interest though and while I was doing my best not to listen to them I heard ‘can’t afford’, ‘what area should I look?’. Hmmmm, now I’m interested – trying not to be, but I can’t help it.

The other lady then started to spout forward her words of wisdom, and I became very uncomfortable in my seat. I started whispering to my husband “she doesn’t know what’s she’s talking about’. I was inwardly groaning and to my dismay my ability to tone out other people’s conversations completely escaped me.

And then! The ‘knowledgeable’ woman told the other one (who was frantically taking notes); she couldn’t go to an auction. I couldn’t help it! I interrupted their conversation, very politely, and asked did she have mortgage pre-approval. The ‘knowledgeable’ woman commenced to tell me yes her friend did have pre-approval but she was a first time home buyer and so she couldn’t go to auction."

Seriously!! It’s scenarios like this that emphasize the need to get your advice from an expert in the field. I personally have assisted first time home buyers to get a pre approved home loan and they have purchased at auctions without any problems. - Angela Peters, Mortgage Adviser at Mortgage People

RELIABLE ADVICE...
The key message to take from this is that friends mean well but are not necessarily right in their information; and their opinion is exactly that – their opinion not always fact... perhaps, not always reliable advice when you need it most. Buying a house is a really BIG deal - and just like you seek legal advice from a Lawyer or financial advice from an accountant so you should seek professional advice when it comes to getting a mortgage.

For free unbiased home loan advice you can contact Mortgage People anytime - more info

freephone 0800 823 823

OCR on hold...

2011-12-07T12:10:00.000-08:00

Once again the Reserve Bank Governor announces the Official Cash Rate is on hold for now, pushing out the timing of future rate hikes saying uncertainty in financial markets could force up funding costs for local lenders and is threatening to hinder New Zealand's recovery.

Earlier this year, Bollard indicated he was keen to remove the extra stimulus he added in response to the February earthquake, though that was put on hold as financial markets tumbled after the United States credit rating was downgraded and the Euro struggled with the high level of debt among some of its members.

Since the last monetary policy statement in September, NZ's sovereign credit rating has been downgraded by Standard & Poor's and Fitch Ratings due to the size of the country's external debt, though the Reserve Bank are expecting household savings to improve as people use the record low interest rate to repay debt and improve their personal balance sheets...

This is something that Mortgage People fully supports and as expected we are already working with many clients to better structure their debt and provide options on better debt management - now really is the time to take advantage of the low interest rates!

What you can control?
We can't control the globally uncertainty, but we can control our own financial situation and give ourselves financial certainty!

* How well do you know your budget - what you get, what you spend, what you could save?
* Is your mortgage structured to suit you or your lender?
* What term is your mortgage on?
* How old will you be when your mortgage is repaid?

Did you know:
At a rate of 5.75%, for an extra $250 per month per $100,000 borrowed you could HALVE your mortgage term. True.
This is something that you can most definitely control, with a little advice and guidance from Mortgage People.

Call us today to arrange your one on one meeting >>> freephone 0800 823 823
or Email us now and we'll be touch soon.

Interest Rate vs. Repayment Rate

2011-11-16T13:57:00.000-08:00

Have you been told that its not the interest rate you are paying,
it is the rate that you repay your mortgage...

In other words, the fastest way to see a reduction in your mortgage or to become debt free is not necessarily to have the lowest possible interest rate, it is in fact how quickly you can repay the debt - how much extra can you pay off your mortgage to reduce the loan amount?

Look at the graph above, it really does make an incredible difference to the overall term and interest costs of your mortgage if you have the ability to pay extra off your mortgage! "It all helps"... you and your family to become debt free faster.

Whether you pay extra off your mortgage constantly or periodically, or the amount differs from one month to the next - you can be assured of one thing - you will be debt free a lot sooner than if you just repaid the minimum amount for the next 30 years!

Why pay the lender (Bank) more in interest than you have too?
Do you know the term of your mortgage? If it is 20 years or 25 years - how old will you be by the time it is repaid? Young enough to celebrate and reap the rewards or ready for the retirement village?

Its really not rocket science - honest.
All you need is financial discipline (easier said than done...) and a professional adviser who sticks by your side over the years to ensure you stay on track no matter what life throws your way.

How to take advantage
You can't ignore the low home loan interest rates available today, to take advantage of this you need to have a close look at your budget - could you find a little or a lot of surplus money that could be directed to your mortgage?

Do you want to be debt free sooner but not sure what to do or where to start...
Does this sound like you?

Click here right now to book your free mortgage check
& find out just how much you could save and how soon you could be debt free!

Or you could just call us ~ freephone 0800 823 823

OCR unchanged at 2.5%

2011-10-26T16:23:00.000-07:00

Today the Reserve Bank left the Official Cash Rate unchanged at 2.50%, and for the first time did not give any clues as to when it may need to rise - other than saying the rate is on hold "for now" and should there be increased pressure on domestic resources their will be "future" OCR increases.

Industry commentary noticed that this announcement was short and sharp compared to the past. What could be seen as pleasing from this, is that it now looks highly unlikely that we will see any change this year to the OCR and perhaps no increases for the first quarter of 2012... resulting in, one hopes, fairly stable home loan interest rates for the next 6 months.

The caution to all of this however is the heavy cloud hanging over the European sovereign debt crisis which could cause further slowing in global activity - the negative affect on us down under is an increase in NZ bank funding costs over the next year or so.

At home, domestic business confidence has been a see-saw and has fallen back somewhat to earlier this year. As Governor Bollard says, "domestic activity has continued to expand at only a modest pace". Inflation has settled near 2% being lower than expected.

What to do?
If your budget does not have much room to move and an increased loan repayment would put pressure on your household -

- stay in touch with your mortgage broker or adviser;

- take note of information in the news and online;

- don't be afraid of asking "an expert" their opinion;

- understand your budget.

On the other hand, if you do have room in your budget to pay extra off your mortgage while interest rates are at an all time low - we'd recommend you definitely look at your options!

Look at this example:

Home Loan $350,000 at 6.5% over 25 years
If you pay an extra $150 each fortnight into you mortgage
You would shave 6 years off your mortgage term = which means saving $100,883 in interest !!

Free Review
Our team offer free reviews, to help you better understand your financial position now and to give you options to consider for the future - this includes your mortgage and insurance...

BOOK your review today email us or phone 0800 823 823.

Disclosure Statement available free of charge, on request.

Our flat lining OCR

2011-09-14T18:18:00.000-07:00

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

2011-09-14T17:13:00.000-07:00

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"

2011-09-04T14:30:00.000-07:00

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.

Interest Rates - What should I do?

2011-08-04T21:15:00.000-07:00

The question being asked right now - How long do I wait before I fix my interest rate?

Last week the offical cash rate (OCR) was left unchanged at 2.50% - which was expected. It was said that the domestic economy is stronger than expected but there are still concerns about the "current frugality in global financial markets".

It would appear now that most economists now expect the Reserve Bank to hike the Official Cash Rate (OCR) by 50 basis points from its current rate on September 15th, and both economists and the central bank itself expect the OCR and floating mortgage rates to rise by around 2-3 per cent over the next two years.

So, the question to ask would be... when is the right time for YOU to fix your interest rate? That is the key when it comes to locking your mortgage in for a fixed term - it has to be all driven by your circumstances and whats right for you and your family. Personallly, none of us can directly impact or control what will happen in the economy or with interest rates, so we need to work with what is on offer and choose to fix or float as it suits our situation.

Some questions to think about:

* Is your household income fixed - can you afford to pay more in to your mortgage if rates increase?

* Do you want to accelerate the repayment of your mortgage?

* Do you understand the impact of interest only?

* Can your budget afford an increased repayment amount if you fix at a higher rate now?

* Do you need certainty in your repayments?

* Do you want flexibility to borrow more and to make bulk repayments?

If you are unsure on what move to make and when - feel free to contact one of our mortgage advisers to talk this through.

Our services are free, and our team keep themselves up to speed with the latest eceonomic news, current offers and interest rates from the lenders. We'd be more than happy to help you with your home loan decision.

Another source of general information is the Sorted website - www.sorted.org.nz

Check us out here or freephone 0508 PEOPLE (0508 736 753)

Our disclosure statement is available on request, free of charge.

Official Cash Rate - WIN WIN

2011-06-08T18:15:00.000-07:00

The latest announcement would have to be a win win.

The Reserve Bank Governor said "The outlook for the New Zealand economy has improved since the publication of the March statement." That's a win!

The OCR has been held at 2.50%. That's a win!

There was also commentary on household debt which remains high so this will continue to hold us back from further retail spending for some time as we continue to focus on repaying debt. While interest rates are as low as they are, it is in our best interests to repay short term debt as soon as you can.

As half the year passes us by, the underlying message is to monitor interest rates closely, get the best possible advice along the way so that if and when you think you should fix your mortgage you are well informed to make the right decision at the right time.

Contact us anytime to talk about your situation, or find your adviser here

Freephone 0508 PEOPLE (0508 736 753)

Financial Advisers Act 2008

2011-06-08T16:43:00.000-07:00

For those of us in the financial services industry regulation has been at the front of our minds for a long time now and we are just about there, from 1st July 2011 the Act is fully in force!

What's this all about?
Well, the purpose of the Act says it all really - "This Act is to promote the sound and efficient delivery of financial adviser and broking services, and to encourage public confidence in the professionalism and integrity of financial advisers and brokers."

Advisers from Mortgage People have always worked to the vision and mission of our founding directors, and interestingly in a way they define what the Act is all about...

"Our group continue their focus on educating our clients on all products and services available to them; providing the best possible advice and direction to ensure each individual meets their goals".

"We strive to ensure our original mission is never lost, in essence it has always been about financial education, that is, we always wanted to help people - giving clients the high level of service and knowledge they wanted, needed and deserved."

In fact, regulation means a whole lot more to both clients and advisers. For example, if we are to give advice now we must be registered on the Financial Service Providers Register. This is a public register that anyone can view online via the companies office website (click here) to ensure that the adviser they have is abiding by the new laws. You'll find all of us on there, just search by adviser name.

ARE YOU AN EXISTING CLIENT?
If you are an existing Mortgage People client, then you'll be used to how we do things.... going forward you may notice a few changes. Don't worry you'll still get the good advice and service that you've always received but there may be a few more documents and forms that we go through with you. This is all about making sure we not only take the most appropriate care in providing you advice but also that we are held accountable to deliver the best possible service that you need, want and deserve.

We'll be commenting from time to time on this to help you better understand and of course, if you have any questions do not hesitate to contact your adviser or email us anytime.

If you think this information would be of value to someone else please pass it on!

Offical Cash Rate held at 2.5%

2011-04-27T21:41:00.000-07:00

Reserve Bank Governor said, "Given the outlook for core inflation and continued economic disruption stemming from the earthquakes, the current level of the OCR is likely to remain appropriate for some time."

Well, one might say that we expected this result, as most economists and voices within the media were predicting the OCR to remain as is... which ever way you view today's decision - if you have a home loan then it has to be positive! With the overall cost of living increasing we don't need our home loan interest rates rising too quickly.

Which brings us to the next question, what if anything will the banks do with their interest rates? We wait to see, lets hope there are either interest rate specials or perhaps a few decreases across the fixed rates that flow through to borrowers.

We publish the most up to date interest rates on our website, so check it out here or contact us.

If you want to talk interest rates, home loans, structures, fixed rate vs variable call Mortgage People today, don't wonder what to do next; talk to us and we'll help you find the right answer.

Freephone 0508 PEOPLE (0508 736 753)

OCR cut to 2.50%

2011-03-10T16:55:00.000-08:00

The big news for the day and to be fair it was expected by most of the banks economists... the Reserve Bank Governor cut the official cash rate by half a percent to 2.50%.

This is big news for all home owners and first home buyers as it prompted the banks to slash their floating rates within minutes of the announcement and it looks likely that the interest rates may hold steady for the remainder of the year.

If you have a floating rate mortgage or your fixed rate is due to expire now is the time to talk to your mortgage broker. Don't miss the opportunity to maximise the current low rates so that you and your family get the best possible financial benefits.

So, what is your "mortgage" plan for 2011?

Do you want 2011 to be better that 2010?
Where do you want to be and how are you going to get there?

Now is the time to think about what you want to achieve financially - Mortgage People can help you kick start your financial plan. We have a free online 'fact find' that will navigate you through your finances so that together we can rearrange your debts to improve your cash flow.

Want to talk to us now? Call free 0508 PEOPLE or email ...

OCR held at 3%

2011-01-26T12:46:00.000-08:00

The holiday's are over and its back to business...

Hot off the press is the latest Official Cash Rate ("OCR") announcement, and one of the key messages from the Reserve Bank Govenor's announcement this morning that we can all take on board is -

"As noted previously, while interest rates are likely to increase modestly over the next two years, for now it seems prudent to keep the OCR low until the recovery becomes more robust and underlying inflationary pressures show more obvoius signs of increasing."

At any time it really is an unknown as to where the interest rates will head; we can only be guided by those in the 'know' and make the decision that is right for us!

If you want to review your current mortgage to make sure your structure is maximising the current low interest rates - contact us today, why wait! You may just be surprised as to what we can do to help you on your way to financial freedom - and don't we all want that sooner rather than later?

Freephone 0508 PEOPLE (0508 736 753)

Visit us online here
or here - 30 Ponsonby Road Ponsonby Auckland

Official Cash Rate - unchanged

2010-10-27T17:36:00.001-07:00

Once again The Reserve Bank today left the Offical Cash Rate (OCR) unchanged at 3%.

Reserve Bank Governor Alan Bollard said "while it is appropriate to keep the OCR on hold today, it remains likely that further removal of monetary policy support will be required at some stage."

Further comment from the Governor stated that with the recent increase in the rate of GST, it is expected that the headline inflation will rise however the subdued state of domestic demand suggests the inflation spike will have limited impact on medium-term inflation expectations.

There was also comment on our household 'caution' when it comes to our spending and the housing market activity being 'muted'.

With this latest news if you are looking at how best to take advantage of the interest rates while they are low and remain steady give us a call and lets talk through the options available to you.

See our best interest rates here.

FIRST HOME BUYERS

2010-10-18T16:26:00.000-07:00

Great news...

Its a buyers market,
Interest rates are fairly low, and
The lenders have their 'spring campaigns' out with special offers!

All of this combined with the ability to use your contributions to KiwiSaver towards the deposit (if you've been in KiwiSaver for 3 years) add up to a great time to buy your first home.

Are you a First Home Buyer?

Do you know a First Home Buyer?

Our best tip : use a mortgage brokers knowledge, expertise and reputation with the lenders to get you the best possible deal!

As mortgage brokers - we work for you, our services are free as the lender pays us, and we'll negotiate the best possible interest rate and any fees that may apply! Plus, we walk you through the whole process and will deal with not only your lender, but your solicitor as well and any other professionals that may be involved!

You don't need to go it alone, if you have not used a broker before or may be you have - give us a call and find out about the Mortgage People experience; it'll cost you nothing and we'll do all the talking with the bank!

FREE First Home Buyers FAQ

FREE First Home Buyers "where to start" guide

If you know a First Home Buyer - share this blog & free information...

LENDING UPTO 90% now available

2010-10-18T13:18:00.000-07:00

Over the past couple of weeks a few of the lenders have advised lending up to 90% is available again. It would be fair to say though, that lending criteria is still fairly tight at this level.

As your brokers, thats where we add value! We talk through deals with our lenders daily to ensure we are always up to speed with whats happening and how the various credit teams are feeling about the market. There is still a bit of uncertainty out there but you can be sure we'll be upfront about what we can do for you and what just won't work right from the start.

If you are in need of refinancing your current debt give us a call, interest rates are still pretty low and in some instances we may be able to get up to $1,000 towards your legals if you need to move your lending.

PS - if you know someone who should talk to us about their mortgage please pass this on!

WANTED Mortgage and Insurance Advisers

2010-10-14T20:12:00.000-07:00

We have an opportunity to build or expand your own business within your local community, and you'll be backed by one of the strongest and oldest brands in the Mortgage and Insurance broking industry - us!

There are a limited number of opportunities so if you are keen to find out more check out our full advert on TradeMe... or if you know someone looking pass this on!

TAX CUTS

2010-09-26T13:53:00.000-07:00

What does it mean to your household?

Tax Cuts are just around the corner; and whilst GST is rising at the same time without a doubt most households will notice an increase in their income.

These opportunities are few and far between, and with the recent tough times rather than fritter away the extra income why not try and get the most out of it...

KiwiSaver
If you are not already contributing; why not make an impact on your later years by paying some of the tax cut money into your superannuation?

Debt Reduction
If you have unwanted consumer debt, credit card limits that don't seem to reduce then why not be smart with the tax cut money - fast track your debt reduction.

Mortgage Payments
Paying extra into your mortgage each month can make a huge difference long term; building equity, reducing the loan amount quicker, reduces the interest you pay the lender.

Redundancy Cover
How are you placed if the unexpected happened? Most families have been affected one way or the other with the Global Financial Crisis - why not take the extra tax cut money and give yourself some peace of mind; get the right insurance covers in place so you don't have to worry!

We all work hard to pay off our mortgage and for most of us it is a lifetime commitment - if you want to get ahead sooner then we'd recommend you review your current situation in line with the Tax Cuts - use this opportunity wisely.

Let us show you how a little can make a big difference to your financial situation.
Questions on any of the above, contact us today and make a difference.

OCR remains unchanged

2010-09-15T17:33:00.000-07:00

We see again this morning the Reserve Bank Governor Alan Bollard said "While the global and domestic economies continue to recover, the outlook has weakened since our June statement and it is appropriate to leave the OCR on hold".

The Governor went on to comment about the impact of the Canterbury earthquake which has 'significantly' disrupted economic activity; he also mentions looking more generally the household sector remains cautious!

However, the silver lining is that their is continued growth in Australia and China which will support demand for New Zealand exports, and the pace and extent of further OCR increases is likely to be more moderate than was projected in the June statement.

So there you go; its likely that our OCR will remain stable for the remainder of the year... we wait to see if there will be any activity from the lenders with their rates despite this announcement.

As always, our team is here to answer any questions you may have around your mortgage and refinancing needs.

Enquire now and get your free 10 minute consultation over the phone!

Mortgages for building a house

2010-08-12T21:57:00.000-07:00

When considering buying a house, you may look at the option of building a new one instead... this can be a great option as new houses often come with building guarantees; they do not reqire a large amount of maintenance and you can influence the finished design to your tastes. This will ensure that your new house is exactly how you want it.

However, building comes with an element of risk too, which is only overcome by preparation and good management. It is important to be prepared when applying for a construction loan.

Our full article on construction/build loans
+ our TOP 10 TIPS is right here!

Contact us anytime if you'd like to discuss your build options.

PRODUCT REVIEW - Revolving Credit

2010-08-08T18:13:00.000-07:00

What is a Revolving Credit Facility?

It is a transactional account which is essentially a large overdraft facility and operates in the same way. All or part of the mortgage can be set up as a revolving credit. The pre-approved credit limit of this facility is loaded onto a cheque account and you can choose to repay as much or as little as you like each month - as long as the balance of the facility remained within its limit at all times.

Some facilities have reducing credit limits which reduce each month along the lines of a table mortgage.

If you want maximum flexibility with your home loan then this facility offers that. It works best for people whose income fluctuates or they are on large incomes or receive regular bonuses - all enabling extra payments into the facility; thus reducing interest!

The most important things to remember with a Revolving Credit facility are to:

set in up correctly at the start
understand fully how it works
review its progress regularly

.. so that you are maximizing the benefits this type of facility provides!

Our full article is available here.

If you want more out of your mortgage and want to know how to refinance and restructure to maximise benefits - CONTACT US anytime no obligation.

Buying commercial or industrial property

2010-08-08T13:26:00.000-07:00

Commercial or industrial property can be a good investment if you understand the risks associated with this type of asset and the manner in which the Banks assess the risk.

It is a popular misconception that the same lending 'rules' apply when bank and non-bank lenders assess the risks associated with commercial and industrial properties, as they use with residential loan applications.

One factor that remains the same for both commercial and residential property when assessing risk profile is the location. Good commercial locations especially those in city centres, will carry less risk to capital protection, value growth and tenant demand, than those in less desirable locations such as regional towns and rural locations.

Read our full article here...

For a free no obligation consultation today, contact our specialist mortgage broker in our commerical team. We have extensive skills, experience and knowledge in this area - view our past projects here.

Interest Rates on the move

2010-08-05T13:56:00.000-07:00

It didn't take too long before one of the major banks made their move! Floating rates have risen slightly but the fixed rates are on the decrease.

Why does this matter to you?
Because when considering how much a person can borrow the banks normally use the 2 and 3 year fixed rates to calculate the servicing... so, a reduction in those rates increases the borrowing power of you - the buyer!

If you are looking at buying or refinancing give us a call or email us and we'll determine, fairly quickly, just how much you are able to borrow!

Reserve Bank raise Official Cash Rate

2010-07-29T13:58:00.000-07:00

The Reserve Bank Governor Alan Bollard raised the Official Cash Rate (OCR) this week a quarter up to 3%. This was predicted by most economists in a Reuters survey and they also expect that The Reserve Bank will continue to lift the OCR back to normal levels that we have had in previous years.

The retail banks are yet to react by way of interest rate increases, and in recent times the fixed rates have actually dropped a little from increases earlier in the year, so its a wait and see of who will move first and in what direction!

View our up to date summary of mortgage interest rates.

Use our online calculators to work out your repayments!