Cairns Lockie Mortgage Commentary
Issue 2006 / 15 25 August 2006
Welcome to the fifteenth fortnightly Cairns Lockie Mortgage Commentary for 2006. We aim 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 (8.00 am on 25 August 2006) the money markets were at the following levels:
Official cash rate 7.25% (unchanged)
90 day bill rate 7.48 (up from 7.47)
1 year swap rate 7.59 (up from 7.53)
3 year swap rate 7.19 (up from 7.16)
10 year bond rate 5.85 (down from 5.86)
Kiwi dollar 0.6338 (up from 0.6335)
LIM Reports Should Say More
The Building Issues Minister is trying to give home owners some more protection. He is planning a Bill which will make
local councils place on their LIM (land information memorandums) reports details of any leaking building issues, past or
present. LIM's are useful reports that home buyers should request from their solicitors before they purchase a property.
They cost around $200 and they show various things such as drains, and previous building consents that affect the
property. On brand new properties we believe they should go a lot further. They should include the previous history of
the land, whether it was a landfill, types of farming activity carried out, any water table or flooding issues,
subsidence issues, and any future designations that have been approved, including roading.
100% Home Loans
Do you need a forty year loan when you can have a 100% Home Loan now? For those struggling to save a deposit, our 100%
Home Loan can help. By the time most potential house purchasers have saved the required deposit, house prices have risen
and are less affordable again. Our 100% Home Loan is there to get you into a house now, and solves the issue about
saving for a deposit. The earlier you purchase your home the more time you have to pay it off. Ask us about our 100%
Home Loan.
Business Loans
A number of small and medium business owners resort to expensive finance company loans to fund their business growth.
There are other funding sources which are considerably cheaper. If the business owner has equity in their home, a
holiday batch, or investment property we can look at providing a home loan, with additional funding for the business
loan. What is more, we will separate or itemise each loan, so you can individually monitor each tranche. This enables
you to structure each tranche as you want, for example interest only or a reducing type of loan. In most cases loans
that are for business purposes are tax deductible and splitting a loan into tranches makes it easier for you to keep
track of the business advances.
Mortgage Brokers Conference
The ninth annual mortgage brokers conference is being held in Christchurch, starting yesterday and finishing tonight.
We are pleased to be participating in this conference and support the growing mortgage broking industry. It is an
excellent venue for participants in the industry, the banks, non-banks and the brokers themselves to get together,
exchange ideas and develop new products. Each year the conference continues to grow and this year over five hundred
delegates are participating.
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 8.15
One-year fixed rate 8.58
Two-year fixed rate 8.23
Three-year fixed rate 8.13
Five-year fixed rate 7.93
Line of credit facility 9.30
ENDS