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

 


OCR Announcement Rise 0.25% - Its Not All Bad

Media release from Mike Pero Real Estate

OCR Announcement Rise 0.25% - Its Not All Bad

Mike Pero founder and director of both Mike Pero Mortgages and Mike Pero Real Estate

This morning the Reserve Bank made the anticipated announcement of a rise in the OCR.

The rate has gone from 2.5% to 2.75% and further rate increases are predicted through 2014 that could see the OCR up to 4.50% in 2015.

So what might this do for home buyers and home owners with mortgages.

If or as banks choose to pass on this increase, in time, then today's announcement could mean an increase in repayments as follows:

The interest component will increase payments, for a $100,000 home loan by $4.81 a week

$200,000 - $9.62 a week; $300,000 - $14.43 a week and $500,000 - $24.04 a week.

In my opinion the increase is neither here nor there. It was inevitable it would raise but I do not think it will slow the market. To offset any perceived negativity here the banks are starting to ease their restrictions on high value lending. The LVR restrictions that came in late last year have cooled some sectors and achieved their objectives.

For aspiring home owners the outlook has changed slightly but its my belief that the rise will not deter the serious home buyers.

The reality is that the two major centres, Auckland and Christchurch still have consistent momentum – the demand continues for their own reasons.

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Cosmetics & Pollution: Proposal To Ban Microbeads

Cosmetic products containing microbeads will be banned under a proposal announced by the Minister for the Environment today. Marine scientists have been advocating for a ban on the microplastics, which have been found to quickly enter waterways and harm marine life. More>>

ALSO:

NIWA: 2016 New Zealand’s Warmest Year On Record

Annual temperatures were above average (0.51°C to 1.20°C above the annual average) throughout the country, with very few locations observing near average temperatures (within 0.5°C of the annual average) or lower. The year 2016 was the warmest on record for New Zealand, based on NIWA’s seven-station series which begins in 1909. More>>

ALSO:

Farewell 2016: NZ Economy Flies Through 2016's Political Curveballs

Dec. 23 (BusinessDesk) - New Zealand's economy batted away some curly political curveballs of 2016 to end the year on a high note, with its twin planks of a booming construction sector and rampant tourism soon to be joined by a resurgent dairy industry. More>>

ALSO:


NZ Economy: More Growth Than Expected In 3rd Qtr

Dec. 22 (BusinessDesk) - New Zealand's economy grew at a faster pace than expected in the September quarter as a booming construction sector continued to underpin activity, spilling over into related building services, and was bolstered by tourism and transport ... More>>

  • NZ Govt - Solid growth for NZ despite fragile world economy
  • NZ Council of Trade Unions - Government needs to ensure economy raises living standards
  • KiwiRail Goes Deisel: Cans electric trains on partially electrified North Island trunkline

    Dec. 21 (BusinessDesk) – KiwiRail, the state-owned rail and freight operator, said a small fleet of electric trains on New Zealand’s North Island would be phased out over the next two years and replaced with diesel locomotives. More>>

  • KiwiRail - KiwiRail announces fleet decision on North Island line
  • Greens - Ditching electric trains massive step backwards
  • Labour - Bill English turns ‘Think Big’ into ‘Think Backwards’
  • First Union - Train drivers condemn KiwiRail’s return to “dirty diesel”
  • NZ First - KiwiRail Going Backwards for Xmas
  • NIWA: The Year's Top Science Findings

    Since 1972 NIWA has operated a Clean Air Monitoring Station at Baring Head, near Wellington... In June, Baring Head’s carbon dioxide readings officially passed 400 parts per million (ppm), a level last reached more than three million years ago. More>>

    ALSO:

    Get More From Scoop

     
     
     
     
     
     
     
     
    Business
    Search Scoop  
     
     
    Powered by Vodafone
    NZ independent news