Issue 17
17 September 1999
Welcome to the seventeenth issue of the Cairns Lockie Mortgage Commentary. 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
The Money Market
This morning (8am on 17 September) the money markets are at the following levels:
Official cash rate - 4.50%
90 day bill - 5.01
1 year swap rate - 5.99
3 year swap rate - 7.17
10 year bond - 6.90
Kiwi dollar - 0.5235
Mortgage Rates - We Are in Normal Circumstances!
Continuing from the comments in our last newsletter, a number of people have been saying to us "Why have all the fixed
rates gone up but not the floating rates?" The answer is straightforward. In a relatively free money market, there
should exist, what economists call, a positive yield curve. The longer you tie up your money for, the higher the rate
you should earn. Investors need to be encouraged to invest for longer periods and compensated for the greater credit
risk inherent in longer dated commitments. We have a relatively free capital market and a positive yield curve, hence
floating rates will be lower than the fixed rates.
More Advances on our Website at www.emortgage.co.nz
Not only do we update out website frequently, we are constantly aiming to improving it by providing more useful
information. Our latest change is to include comparative interest rates offered by trading banks. In virtually all
cases, it is better to go to a specialist mortgage banker such as Cairns Lockie Limited. Visit the site at
http://www.emortgage.co.nz/competitors.htm
What People are Doing in the Capital
Following conversations with various valuers and house purchasers, we seem to be noticing a trend among some Wellington
people, in purchasing property in the Wairarapa. For years this part of the country was clearly out of fashion, but as
more people start enjoying the fine wines from the region, a number want to live there as well. Those that have moved
tell us the climate is better, the lifestyle more laid back and the drive over the Rimutaka's is not that bad after all.
Buying Property in Australia?
Are you thinking of purchasing a property in Australia? Although we do not have an office there, we have numerous
contacts that will be able to assist you. Not only with financing but also with the more general issues of capital gains
tax, stamp duty, negative gearing and so forth. If you are thinking of purchasing, please do not hesitate to contact us.
Auckland Collier Hockey Update
Our Auckland team is building up well for its Timaru matches the weekend after next. The team has had good wins against
Bay of Plenty, North Harbour A, and Tauranga. A couple of surprise losses have focused resolve for the tournament. Good
luck for the Trophy.
Our current interest rates are as follows
Variable rate 5.85%
Two-year fixed rate 7.80
Three-year fixed rate 8.30
Five-year fixed rate 8.75
Line of credit facility 6.25
Equity accelerator 6.25
Regards
William Cairns
James Lockie
Glyn Slade
Scott Gasson
Cairns Lockie Limited PO Box 74-212, Market Road, Auckland Telephone (09) 525 9711 Facsimile (09) 579 7795
Website http://www.emortgage.co.nz
If you know anyone who may find this newsletter useful we would be happy for you to forward it on.
ENDS