Cairns Lockie Mortgage Commentary

Cairns Lockie Mortgage Commentary

Issue 14---------6 August 1999

Welcome to the fourteenth issue of the Cairns Lockie Mortgage Commentary. 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 (and our new mortgage calculator) can be found on our website www.emortgage.co.nz

The Money Market

This morning (8am on 6 August) the money markets are at the following levels:

Official cash rate---------4.50%
90 day bill------------------4.69
1 year swap rate---------5.27
3 year swap rate---------6.59
10 year bond------------------6.68
Kiwi dollar------------------0.5310

A Very New Zealand Property Trait

Most New Zealanders yearn for a piece of land out in the country. Demand for lifestyle blocks accelerated rapidly during the 1990s. The advantage of this type property is that you get to experience the country lifestyle, yet you still have all the benefits of a city nearby. Lifestyle blocks are found next to all the major cities in the country. However they seem to be getting smaller. Ten years ago the average size of a lifestyle block was around five hectares. Now it is closer to two hectares. Acc ording to Bayleys Research Department, the number of lifestyle blocks has now passed one hundred thousand. They are now more common than farms, with the median price in Auckland currently $290,000. The West Coast offers somewhat better value at $57,000.

Our Line of Credit Proves Increasingly Popular

One of our products that is being continually requested is our line of credit facility. With an interest rate of 6.25%, it is one of the lowest in the market place. Our competitors' products are priced from 6.50 to 6.95%. On top of that, at Cairns Lockie, we do not charge either monthly fees or drawdown fees. The whole facility can be conveniently operated through our telephone banking system.

Update On Our Website.

We have been asked how often our website at www.emortgage.co.nz is updated. It is currently updated twice a week, so the mortgage rates quoted are the latest. We are continuing to improve our website. Our most recent upgrade is the addition of a java-based mortgage calculator. This is of great assistance in helping to calculate those monthly payments if you are thinking of applying for a mortgage or are planning to refinance. Try it out at www.emortgage.co.nz/calculator.htm

Net Banking Growth Outpaces US Regulators

The US General Accounting Office says that some banks are having trouble adjusting to the online business environment. Households using internet banking in the US are expected to increase from 6.6 million at the end of 1998, to 32 million by 2003. A quarter of banks did not have a well thought out strategic plan for online banking activities, the GAO said.

Viaduct Basin Develops, Notes Darrochs

In Darroch Research's latest property report Aspect, they note that residential development at Auckland's Viaduct Basin continues. The Point has 85 apartments and is 75% sold. Latitude 37 has 95 units nearing completion. The Watermark has 144 services apartment due for completion in early 2000, and the Quays will provide 60 apartments including two large penthouse units.

Our current interest rates are as follows

Variable rate---------------------------5.85%
Two-year fixed rate------------------7.05
Three-year fixed rate------------------7.55
Five-year fixed rate------------------8.15
Line of credit facility------------------6.25
Equity accelerator------------------6.25

Regards

William Cairns James Lockie Glyn Slade

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