Cairns Lockie Mortgage Commentary
Issue 2006 / 4 24 March 2006
Welcome to the fourth Cairns Lockie Mortgage Commentary for 2006. 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 24 March 2006) the money markets were at the following levels:
Official cash rate 7.25% (unchanged)
90 day bill rate 7.46 (down from 7.56)
1 year swap rate 7.25 (down from 7.35)
3 year swap rate 6.65 (down from 6.80)
10 year bond rate 5.77 (up from 5.74)
Kiwi dollar 0.6250 (down from 0.6500)
Licensed Conveyancers are Now Okay
Recently in Parliament, the Lawyers and Coveyancing Act was passed into law, creating the new profession of "Licensed
Coveyancer". Now, if you are buying or selling a house you have a choice of either using a licensed conveyancer or a
lawyer. This may, over time, reduce property transaction costs. Built into the legislation is a range of consumer
protections such as requiring licensed conveyancers to have professional indemnity insurance. Licensed conveyancers
exist in other jurisdictions.
Increase Council Rates Hurt the Elderly
Over the past 5 years, the inflation rate has averaged between 2 - 3%, and for the next couple of years it is expected
to average around 3%. Across the country councils have been increasing their rates by 7 -10%. Regional councils are
doing the same. Ongoing rate increases, such as we are experiencing, hurt two particular groups in society, the elderly
on fixed incomes and those juggling the many costs of bringing up a family. Councils must look at new and innovative
funding alternatives and live within their means rather than having a cost-plus mentality. Most of the regional council
activities should be devolved back to the local councils and their role should be no more than that of an environmental
protection agency. This would stop the current trend of empire building within these organisations and reduce rate
rises.
Good News for the Self Employed
One group who has traditionally found it harder to borrow is the self employed, who run small to medium sized
businesses. Over the years we have targeted this particular market segment and have developed a range of products which
meet their individual requirements. Our "No Financials or Low Doc" mortgage is ideal here. In many cases the self
employed can borrow at our prime rates. All they have to do is self-certify their incomes. This saves a lot of time, not
to mention the cost of producing financial accounts and cash flows. We welcome your enquires.
Invest With Us and Increase Your Returns
Our subsidiary company, General Finance Limited is offering 9.99% pa with interest paid quarterly for a two year secured
debenture investment. This is an attractive return but you can do still better with us. If you do not require your
interest paid out quarterly as income, you can select our reinvestment option. This way you get paid interest on your
interest (also known as compound interest). This will increase your first year return on the above investment from 9.99%
to 10.37%. Our secured debenture investments are an attractive way to save.
Our current mortgage interest rates are as follows:
Variable rate 9.20%
No Financials Home Loan 9.80
Jumbo Loan 9.20
Quick Start Home Loan 8.10
One-year fixed rate 8.53
Two-year fixed rate 8.04
Three-year fixed rate 7.89
Five-year fixed rate 7.89
Line of credit facility 9.30
Regards
William Cairns
James Lockie
Cairns Lockie Limited
321 Great South Road, Greenlane, Auckland
PO Box 74-212, Market Road, Auckland
Telephone (09) 526 2000
Facsimile (09) 579 7795
Website http://www.emortgage.co.nz
Email mailto:wcairns@emortgage.co.nz (ddi 09 526 7801)
mailto:jlockie@emortgage.co.nz (ddi 09 526 7800)
mailto:gslade@emortgage.co.nz (ddi 09 526 7802)
mailto:plange@emortgage.co.nz (ddi 09 526 7805)
mailto:mwardell@emortgage.co.nz (ddi 09 526 7811)
mailto:amarsh@emortgage.co.nz (ddi 09 526 7816)
mailto:ecarr@emortgage.co.nz (ddi 09 526 7803)
mailto:kpedersen@emortgage.co.nz (ddi 09 526 7812)
mailto:lmcrae@emortgage.co.nz (ddi 09 526 7819)
mailto:mkabel@emortgage.co.nz (ddi 09 526 7806)
mailto:jmills@emortgage.co.nz (ddi 09 526 7804)
mailto:mdixon@emortgage.co.nz (ddi 09 526 7814)
mailto:leverall@emortgage.co.nz (ddi 09 526 7808)
mailto:ebrooks@emortgage.co.nz (ddi 09 526 7809)
mailto:llancaster@emortgage.co.nz (ddi 09 526 7809)
mailto:avasquez@emortgage.co.nz (ddi 09 526 7815)
mailto:tchappell@emortgage.co.nz (ddi 09 526 7813)
If you know anyone who may find this newsletter useful we would be happy for you to forward it on.
Cairns Lockie Limited is not a Registered Bank.
ENDS