Rates Rise But Margin Below Trading Banks Preserve

Cairns Lockie Limited Mortgage Bankers

Press Release 12 June 2000

Floating Mortgage Rates Rise But Margin Below Trading Banks Preserved

Mortgage bankers Cairns Lockie Limited announced a rise in its floating mortgage rate, to 8.35% pa, effective immediately for new business (12 June 2000) and from 20 June 2000 for existing loans.

The 70 point rise follows the Reserve Bank's recent increases in the OCR totalling 75 points.

Mr Lockie said that Cairns Lockie had been able to preserve the 45 point margin below the trading bank floating mortgage rates (currently 8.80%).

Mr Lockie noted further that the Company had managed to hold it rate for 3 to 4 weeks longer than the trading banks. "This continues a trend established over the last year and a half" he said, "with the lag in increasing rates, our clients have saved an average of almost three quarters of a percent, when compared with the trading banks".

Rises in wholesale rates has also seen the Company's fixed rates move up, to the following Two year fixed 8.75 Three year fixed 8.85 Five year fixed 8.99

Cairns Lockie Limited is a mortgage banking company specialising in residential and residential investment lending. It has a strong internet presence through its site www.emortgage.co.nz

-ENDS-

For further information contact: James Lockie Director Cairns Lockie Limited Phone 09 525 9711 Fax 09 579 7795 Email jlockie@emortgage.co.nz Web www.emortgage.co.nz

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