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Cairns Lockie Mortgage Commentary 20 Aug

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  • Cairns Lockie Mortgage Commentary 20 Aug

    Hi Guys

    Cairns, Lockie's latest newsletter:

    Cairns Lockie Mortgage Commentary

    Issue 2004/15 20 August 2004

    Welcome to the fifteenth Cairns Lockie Mortgage Commentary for 2004.
    This is a fortnightly electronic newsletter, which aims to keep you
    informed on developments at Cairns Lockie, Mortgage Bankers and the
    mortgage market in general. Previous issues of this commentary can be
    found on our website http://www.emortgage.co.nz/newsletters.htm

    The Money Market

    This morning (8 am on 20 August 2004) the money markets were at the
    following levels:

    Official cash rate 6.00% (unchanged)
    90 day bill rate 6.45 (up from 6.40)
    1 year swap rate 6.60 (up from 6.57)
    3 year swap rate 6.66 (unchanged)
    10 year bond rate 6.21 (down from 6.26)
    Kiwi dollar 0.6631 (up from 0.6450)

    House Prices Still Going Up

    The housing market is still reasonably active. Recent figures from the
    Real Estate Institute confirm this. Figures for July show that the
    median house price in New Zealand increased to $249,000 from $243,000 in
    June. Over the 16 regions in New Zealand, 11 had increasing prices, 5
    had decreasing prices and one was flat. Days to sell a residential
    property decreased from 31 to 30 days, although it is fair to say the
    selling period has hovered around 29 - 31 days over the past six months.
    Turnover has fallen to 8,376 dwellings. Last year and the previous year,
    monthly volumes have exceeded 10,000. So house prices are remaining
    firm, they are still selling quickly but volumes sold have decreased.
    The increase in interest rates by the Reserve Bank has had virtually no
    impact on the housing sector. All that it has done, is made it harder
    for the first time home buyers to purchase a property due to rising
    costs of mortgage finance.

    Require More Funds? - It Is Easy!

    With the recent increase in house prices many homeowners are using their
    mortgage to access additional funds. Mortgage finance is often the
    cheapest and most flexible form of funding available to the homeowner. A
    borrower with expensive consumer finance and credit cards, can
    consolidate them into their mortgage account. Extra funds can also used
    for home improvements - a kitchen, a bathroom or even adding an extra
    room. If you require additional finance and you already have a mortgage
    with us, we call this "getting a top up". We look forward to hearing
    from you.

    Mortgage Calculator of Assistance

    We were pleased to get a mention in Mary Holm's finance column in the
    back of the NZ Herald last Saturday in her discussion on mortgage
    calculators. She commented that our mortgage calculator is easy to
    locate, straight forward to use, and offers an easy comparison between
    rates with say your current mortgage provider. You too can enjoy it by
    visiting http://www.emortgage.co.nz/calculator.htm

    Watch your Auckland Regional Council Rates Notice

    Over the past week those that reside in the greater Auckland region will
    have received their rates notice from this council body. We have heard
    of some cases, for rental properties, where the ARC has applied the
    higher business rate to properties which have been and still are rated
    at the residential rate on the local council's rates notices. We urge
    you to look at your ARC rates notice and check it. If you are concerned
    or believe that there is an error we suggest you contact the ARC as soon
    as possible.

    Our current mortgage interest rates are as follows

    Variable rate 7.90%

    No Financials Home Loan 8.90

    Jumbo Loan 7.90

    Quick Start Home Loan 7.50

    One-year fixed rate 7.81
    Two-year fixed rate 7.87
    Three-year fixed rate 7.94
    Five-year fixed rate 7.96

    Line of credit facility 8.00

    William Cairns
    James Lockie

    Cairns Lockie Limited
    321 Great South Road, Greenlane, Auckland
    PO Box 74-212, Market Road, Auckland
    Telephone (09 526 2000
    Facsimile (09) 579 7795
    Website http://www.emortgage.co.nz
    "There's one way to find out if a man is honest-ask him. If he says 'yes,' you know he is a crook." Groucho Marx