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

 


'Don't Be Caught Out by Double Whammy'

21 May 2004

NZ Mortgage Brokers Association Urges Borrowers: 'Don't Be Caught Out by Double Whammy'

The nation's leading mortgage brokers believe that interest rates for home loans are likely to increase another 0.5% in the coming months, and that consumers need to get their ducks in a row to ensure they are protected.

"The variable rate has gone up about 0.5% since the start of the year, and we believe all rates could go up another 0.5% well before the end of 2004. There's significant pressure in the marketplace pushing interest rates up. Borrowers need to position themselves so they don't get caught out by the double whammy of higher interest rates and a softening property market," says Brian Berry, Chairman, New Zealand Mortgage Brokers Association.

He encourages borrowers to seek professional advice for their individual situations. Strategies they might like to consider include:

* Fixing their loans for a period

* Reviewing the structure of their loans (eg, possibly moving from a Principal and Interest loan to an Interest Only loan for a set period to mitigate potential cash flow problems)

* Ensuring that they have the flexibility to sell their property or properties if the need arises (especially for borrowers who have taken on significant debt to invest in property)

The Association acknowledges that interest rates are still at historically attractive levels, "but it's far easier to position yourself earlier rather than later, and more cost effective. It's prudent to do a review with a professional adviser. Now is not the time to be complacent. Specialist advice is essential," he said.

The New Zealand Mortgage Brokers Association includes approximately 600 members across New Zealand and accounts for 28% of home loans in the marketplace. NZMBA members are bound to operate under strict standards and ethics, adds Mr Berry.

ENDS


© 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>>

ALSO:

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>>

Earlier:

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>>

ALSO:

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>>

ALSO:

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>>

ALSO:

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>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news