Cairns Lockie Mortgage Commentary
29 October 1999
Welcome to the twentieth 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 can be found on our website http://www.emortgage.co.nz
We are a little late today, as I have just returned from Wellington. Apologies for this. Will be back on time next issue.
The Money Market
This morning (8am on 29 October) the money markets are at the following levels:
Official cash rate 4.50%
90 day bill rate 5.24
1 year swap rate 6.12
3 year swap rate 7.38
10 year bond rate 7.09
Kiwi dollar 0.5115
We Have Started TV Advertising!
That's right! Cairns Lockie has started advertising on television. We are running a series of advertisements on Prime TV over the next few weeks. We like the content of Prime, so we thought it was a good place on which to advertise. We are targeting those who are thinking of refinancing. There are huge savings to be made from switching from trading banks' floating rates of 6.75% (or their higher fixed rates) to our floating rate of 5.85%.
Further Enhancements to our Website
In conjunction with our television advertising we have added another calculator to our website. It goes beyond just working out your monthly payments, or how much you can borrow, to working out how much you will actually save if you refinance with Cairns Lockie. You can try out our new calculator at http://www.emortgage.co.nz/calculator.htm
Why have the Banks put up their Floating Rates
Several people have asked us why have the banks been putting up their rates when the overnight cash rate remains unchanged. We are aware that the swap curve has moved outwards which explains the increase in fixed rates. However we cannot fully explain why their floating rates have increased. This may be the banks just increasing their margins. Please note our floating rate remains at 5.85%.
Cairns Lockie Continues to Expand
We welcome a new staff member, Phil Blain. Phil will join us, on Monday, in a lending role. He was previously with AMP/ERGO as credit manager. Prior to this he was with the National Bank for several years as a branch manager and in other senior lending roles. You can contact Phil at mailto:email@example.com
Fraudster Article Picked Up by Good Returns Mortgage News
Last fortnight we noted the increase in fraudulent mortgage applications. This was picked up and expanded on, by the financial journalists at Good Returns. You can see their full article at http://www.goodreturns.co.nz/mortgage.phml
Our current interest rates are as follows
Variable rate 5.85%
Two-year fixed rate 7.80
Three-year fixed rate 8.30
Five-year fixed rate 8.75
Line of credit facility 6.25
Regards William Cairns James Lockie
Cairns Lockie Limited PO Box 74-212, Market Road, Auckland Telephone (09) 525 9711 Facsimile (09) 579 7795
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