Homeowners Could Be Forced to Sell: Mortgage Man

Media Release
Friday 8 June 2007

Homeowners Could Be Forced to Sell Fears Mortgage Man Mike Pero

The Founder of New Zealand’s most trusted mortgage broking franchise network is available for comment on the Reserve Bank’s latest Monetary Policy Statement.

Mike Pero says there are three key points to consider.

1. The Government is trying to promote saving through a compulsory savings KiwiSaver scheme on one hand, but on the other the Reserve Bank decision is in effect increasing interest rates and failing to offer tax cuts to mitigate the effect on a homeowners disposable income.

2. Kiwis are finding it hard enough to get a foot on the property ladder, and these continued hikes are possibly going to leave some homeowners with no choice but to sell if they can’t service the new mortgage rates.

3. New Zealand is becoming a nation of renters, and this trend may well continue with Kiwis being unable to enter the property market, and an increasing number of off-shore investors buying prime New Zealand land.

“My advice is for homeowners with mortgages to talk with their mortgage broker to review their mortgage structure and look to secure competitive fixed rates to whether the storm of these effects over the next few years,” says Mike Pero.

ENDS

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