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

 

Cairns Lockie Mortgage Commentary

Cairns Lockie Mortgage Commentary

10 December 2004

Welcome to the twenty-third and final Cairns Lockie Mortgage Commentary for 2004. 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/newsletters.htm

The Money Market

This morning (8am on 10 Dec 2004) the money markets were at the following levels:

Official cash rate 6.50% (unchanged) 90 day bill rate 6.70 (down from 6.71) 1 year swap rate 6.66 (down from 6.70) 3 year swap rate 6.57 (down from 6.60) 10 year bond rate 5.97 (down from 6.00) Kiwi dollar 0.7130 (up from 0.7110)

And Now We Are Six

This year has been another active one for us at Cairns Lockie. We have continued to grow strongly. Amongst our highlights "
we have continued to push home ownership as a desirable aspiration, with our 100% No Deposit Home Loan proving popular. "
we have added another wholesale funder, Origin Mortgage Management Limited, which is a wholly owned subsidiary of the ANZ Bank. This has enabled us to increase our product offering. "
we are one of the few players in the market to offer a ten year interest-only mortgage which has proved popular with property investors.

" we have become a deposit taker in our own right, with General Finance Limited issuing a prospectus to raise secured retail deposit funds.

Our 2005 Crystal Ball

We believe that interest rates have now peaked but any decreases are unlikely to occur until late next year. Interest rates pretty well reflect the state of the economy. Currently we have a robust economy, low unemployment plus a strong currency. Any weakening of the economy will see lower interest rates after a lag period. We believe the housing market will be mixed over the coming year. There are a number of apartments currently being completed so we see some softening here, particularly in Auckland. Some residential landlords are telling us it is now getting harder to let their properties. This is due to more stock coming on to the market and lower immigration. We see a continued demand for well located owner occupied dwellings in prime suburbs as well as coastal properties.

Cannot Save a Deposit but Want a Home?

Over the past fifteen years and going against overseas trends, our home ownership rates has decreased from around 74% to the current level of 67%. Our 100% Home Loan is helping counter this trend. It is ideal for those in steady employment and want to commence home ownership but who are finding it increasingly more difficult to save that deposit. Commencing from this week we have increased our first mortgage limit from the current $300,000 to $400,000, as well as offering greater fixed rate choices. This should widen the appeal of this product.

Snakes and Ladders

The Reserve Bank has recently released a booklet called Snakes and Ladders, a guide to risk for savers and investors, written by the well known financial writer Mary Holm. This is a timely publication as there is a lot of discussion in the media about retirement savings. It covers the many facets on this subject. This can be a confusing area but Mary Holm has written it in a straight forward manner, in a form that is easy to comprehend. It is particularly relevant for those who have not yet started to save or those that have a savings plan underway. It takes a non-partisan approach and what's more there is no charge for this 48 page booklet. All you have to do is write to the Reserve Bank of New Zealand at P O Box 2498, Wellington or email them on info@rbnz.govt.nz

Deposit Rates

We are currently looking for funds for our finance company, General Finance Limited. These will be secured by first ranking debenture. Our top rate is 9.0% for a two year term. We do offer a range of terms from 6 months through to 5 years. Our minimum deposit is $5000. If you require an investment statement and/or a prospectus please do not hesitate to contact us.

This is our last newsletter for the year. We trust you have found them useful. We would like to wish our subscribers, introducers and clients a very Merry Christmas and all the best for 2005. Our first newsletter in the new year will be on 11 February 2005

Our current mortgage interest rates are as follows

Variable rate 8.40%

No Financials Home Loan 9.40

Jumbo Loan 8.40

Quick Start Home Loan 7.45

One-year fixed rate 7.76 Two-year fixed rate 7.77 Three-year fixed rate 7.79 Five-year fixed rate 7.76

Line of credit facility 8.50

Regards William Cairns James Lockie

ENDS

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Westpac: Sets Out Plan To Go Cheque-Free

Westpac NZ has announced details of its plan to phase out cheques, after signalling in May that it would be supporting a move to other forms of payment. Cheques will cease to be available as a means of payment after 25 June 2021. Westpac NZ General ... More>>

ALSO:

NZTA: Major New Zealand Upgrade Programme Projects Go To Tender

Two major New Zealand Upgrade Programme projects are beginning tenders for construction. The New Zealand Upgrade Programme is a $6.8 billion investment to get our cities moving, to save lives and boost productivity in growth areas. The first Auckland ... More>>

Reserve Bank: RBNZ Seeks To Preserve Benefits Of Cash

The Reserve Bank – Te Pūtea Matua is taking on a new role of steward of the cash system “to preserve the benefits of cash for all who need them”, Assistant Governor Christian Hawkesby told the Royal Numismatics Society of New Zealand annual conference ... More>>

ALSO:

Economy: Double-Dip Recession Next Year, But Housing Rolls On

New Zealand's economy is expected to slip back into recession early next year as delayed job losses, falling consumer spending, and the absence of international tourists bites into growth. More>>

ALSO:

Microsoft New Zealand: Microsoft Expands “Highway To A Hundred Unicorns” Initiative To Support Startups In Asia Pacific

New Zealand, 14 October 2020 – Today Microsoft for Startups launches the Highway to a Hundred Unicorns initiative in Asia Pacific to strengthen the region’s startup ecosystem. This follows the initiative’s success in India, where 56 startups were ... More>>

Fonterra: Farmers Taking Another Step Towards New Zealand’s Low Emissions Food Production

They’re hot off the press and intended to help take the heat out of climate change. Fonterra farmers are already among the world’s most sustainable producers of milk and now have an additional tool in their sustainability toolbox. Over the last few ... More>>

ALSO:



Courts: Businessman Eric Watson Sentenced To A Four-Month Jail Term

New Zealand businessman Eric Watson has been sentenced to a four-month jail term in the UK for contempt of court, TVNZ reports. More>>

OECD: Area Employment Rate Falls By 4.0 Percentage Points, To 64.6% In Second Quarter Of 2020

The OECD area employment rate – the share of the working-age population with jobs – fell by 4.0 percentage points, to 64.6%, in the second quarter of 2020, its lowest level since the fourth quarter of 2010. Across the OECD area, 560 million persons ... More>>

Spark: Turns On 5G In Auckland And Offers A Glimpse Into The Future Of Smart Cities

Spark turned on 5G in downtown Auckland today and has partnered with Auckland Transport (AT) to showcase some of the latest in IoT (Internet of Things) technology and demonstrate what the future could look like for Auckland’s CBD with the power of 5G. 5G is ... More>>

Stats NZ: Monthly Migration Remains Low

Since the border closed in late-March 2020, net migration has averaged about 300 a month, Stats NZ said today. In the five months from April to August 2020, overall net migration was provisionally estimated at 1,700. This was made up of a net gain ... More>>

University of Canterbury: Proglacial Lakes Are Accelerating Glacier Ice Loss

Lake Tasman, New Zealand | 2016 | Photo: Dr Jenna Sutherland Meltwater lakes that form at glacier margins cause ice to recede much further and faster compared to glaciers that terminate on land, according to a new study. But the effects of these glacial ... More>>

ALSO:

Dairy: Fonterra Sells China Farms

Fonterra has agreed to sell its China farms for a total of $555 million (RMB 2.5 billion*1), after successfully developing the farms alongside local partners. Inner Mongolia Natural Dairy Co., Ltd, a subsidiary of China Youran Dairy Group Limited ... More>>

ALSO: