Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Cairns Lockie Mortgage Commentary

Issue 2002/12 12 July 2002

Welcome to the twelfth Cairns Lockie Mortgage Commentary for 2002. 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

The Money Market

This evening (9 am on 12 July 2002) the money markets were at the following levels:

Official cash rate 5.75% (up from 5.50)
90 day bill rate 6.02 (up from 6.00)
1 year swap rate 6.24 (down from 6.32)
3 year swap rate 6.62 (down from 6.73)
10 year bond rate 6.53 (down from 6.57)
Kiwi dollar 0.4830 (down from 0.4910)

Our Core Mortgage Product is Still the BEST

The news over the past week is, that as a result of the Reserve Bank increasing the Official Cash Rate, all floating rate mortgages have increased. The trading banks have all increased their floating mortgage rates to 8.00%. We are increasing our floating rate to 7.60%, which is nearly half a percent under the banks' rate. This still offers extremely good value for our borrowers. You save $630 a year if you a $200,000 mortgage with us rather than with a trading bank. We do not charge any ongoing fees and it appears interest rates are about to peak. There is real value in having a home loan with us.

Housing Market

The housing market remains firm despite the recent mortgage rate increases. Each time mortgage rates rise the housing affordability index decreases. This has not been deterring home buyers. A recent survey by the ASB Bank shows that 54% of respondents still think it is a good time to buy a property. People in the South Island are even more optimistic. Our unemployment rate may even drop below 5% for the first time since the 1980's. Immigration is continuing and in certain prime areas there is a real shortage of the right type of housing. This bodes well for the housing sector.

We Like to Help

One of the delights in our work is assisting people who are having difficulty in obtaining mortgage finance. A recent example was a couple who was recent immigrants from South Africa. They had a reasonable deposit but because they were both self employed, with a short work history in this country, and no credit history, they were unable to obtain a mortgage. Through our 'No Financials' product we were able to assist them. Another case was a property investor who had a freehold house, but wanted a credit facility, so he could negotiate hard and acquire well priced properties by paying cash. We were able to assist through our line of credit product. Another case was an individual who wanted a short-term second mortgage for a business venture: again we were able to assist. We are continuing to offer more products and solutions to our increasing client base.

What is a LIM Report and Who Needs One

A Land Information Report, provided by your local council, can tell you a lot about a property you may be considering purchasing. Is it worth the $300 it costs? We think so. If the property has had building alterations the LIM will tell you whether they are permitted and whether a code compliance certificate has been issued. You may also learn whether there is potential erosion, flood or contamination issues, new or wider roads planned and a number of other details. Making a sale and purchase agreement conditional upon a satisfactory LIM can be good insurance.

Our current mortgage interest rates are as follows

Variable rate 7.60% (new)

No Financials Home Loan 8.60 (new)

Quick Start Home Loan 7.15 (new)

One-year fixed rate 7.46 (new)
Two-year fixed rate 7.72 (new)
Three-year fixed rate 7.84 (new)
Five-year fixed rate 8.01 (new)

Line of credit facility 7.70 (new)

Regards William Cairns James Lockie

© Scoop Media

Business Headlines | Sci-Tech Headlines


I Sing The Highway Electric: Charge Net NZ To Connect New Zealand

BMW is turning Middle Earth electric after today announcing a substantial contribution to the charging network Charge Net NZ. This landmark partnership will enable Kiwis to drive their electric vehicles (EVs) right across New Zealand through the installation of a fast charging highway stretching from Kaitaia to Invercargill. More>>


Watch This Space: Mahia Rocket Lab Launch Site Officially Opened

Economic Development Minster Steven Joyce today opened New Zealand’s first orbital launch site, Rocket Lab Launch Complex 1, on the Mahia Peninsula on the North Island’s east coast. More>>


Marketing Rocks!
Ig Nobel Award Winners Assess The Personality Of Rocks

A Massey University marketing lecturer has received the 2016 Ig Nobel Prize for economics for a research project that asked university students to describe the “brand personalities” of three rocks. More>>


Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>


Half A Billion Accounts, Including Xtra: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>


Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news