Mike Pero confirms $200 million of mortgages

Media Release: 12 DECEMBER 2006

Mike Pero Mortgages confirms $200 million of mortgages

Mike Pero Mortgages confirmed a record $200 million worth of mortgages in November 2006, up from the previous record of $175 million in a calendar month.

“This is a very strong performance in what has been a relatively soft housing market this year,” says Jeff Staniland, Mike Pero Mortgages chief executive.

“We have found, however, that increasing numbers of existing and potential homeowners are seeking the expert advice of mortgage brokers, and which is demonstrated by our November figures.

“We have also noticed that with house prices and interest rates continuing to fluctuate, more homeowners are seeking independent advice before they commit to a mortgage.

“Mike Pero Mortgages has relationships with 16 different lenders and is able to provide independent advice to its clients, based on their circumstances and our experience,” says Jeff Staniland.

“As well as people seeking new mortgages, the number of people reassessing their mortgages as they come off fixed two or three year rates has provided a significant amount of business this year.

“Home-owners have been seeking advice on whether to move to a floating rate or to refinance on another fixed term.”

Around 80 percent of home-loans in New Zealand are fixed. While floating rates have moved significantly higher in the past three years as a result of the Reserve Bank’s tightening cycle, fixed rates have been less affected.

“Floating rates are now between 9 and 9.55 percent at most lending institutions, while fixed rates are up to 1.5 percentage points lower, depending on the length of the term and the lender.”

“But mortgages are not just about headline rates. A small difference in the headline rate can be more than offset by other charges and fees, as well as any costs associated with exiting the mortgage after a few years, as most people do.”

As at the year ended 30th June 2006 Mike Pero Mortgages estimates it will have arranged more than $4 billion of home loans in the past year three years alone.

This compares with an estimated $7 billion of home loans in the company’s first 13 years (1990 – 2003)

ENDS

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