Summary – No change likely for some time

• The Reserve Bank of New Zealand (RBNZ) left the Official Cash Rate (OCR) unchanged at 2.5%.
• The RBNZ also noted that there are signs of modest growth in the New Zealand economy but the global economy remains very fragile.
• The OCR looks set to remain at its current level for an extended period.

What happened?

• As widely expected, the Reserve Bank left the OCR unchanged at 2.5% at its latest review on 26 January 2012. 
• The RBNZ also said there were signs of modest growth in domestic spending and a limited recovery in the housing market. Rebuilding in Christchurch looks set to provide a significant boost, though continued aftershocks could delay this.
• However they also noted that while international financial market sentiment had improved slightly, the global economic outlook continues to be fragile.
• The Reserve Bank said this uncertainty, and the fact that inflation pressures have reduced, made it prudent to keep the OCR at its current level.

What does this mean?

• The tone of the Reserve Bank’s announcement indicates it is in no hurry to raise the OCR. Our economists expect that any increase is unlikely to occur until December at the earliest.

How does the OCR affect home loan interest rates?

The OCR is set every six weeks by the Governor of the Reserve Bank.  The Governor sets this rate to manage inflation, based on what’s happening in the economy.  The OCR is one of many indicators, including overseas interest rates and wider economic developments, that affect short term interest rates such as floating rates and one and two year fixed lending rates.

We provide this service absolutely free of charge and we can look at options across not only a whole range of products but also across a whole range of lenders.

In the mean time check out some of the great rates available today!

Floating/Flexible Rates
Floating Interest Rate 6.24% p.a.
Flexible Interest Rate 6.20% p.a.

Fixed Interest Rates
6 months 6.35% p.a.
1 year 5.95% p.a.
18 Months 6.29% p.a.
2 years 6.49% p.a.
3 years 6.99% p.a.
4 years 7.45% p.a.
5 years 7.70% p.a.

Not sure what would work best for you? Drop us a line and we will help.

We Can Do A Second Mortgage

We have a few million $NZ for second mortgage placement.

Lenders are currently quite sensitive to high first mortgage amounts and priority figures and so Caveat seconds are starting to re appear as they did many years ago.

These are great options for people who have a deal that needs to be done and only need the lending for 12 to 24 months.

All deals on a case by case basis.

Product: Interest Only.

Term: 12 to 24 months.

Security: Residential Property.

Rate: 14% to 17%

Lvrs: under 75%

Max Amount: $100,000.

Right to pay down: Some lenders will allow principal payments.

This option is certainly worth a try and is very competitive with other available options out there at the moment.

Asset Lending Advances

This is a great option for people with lots of equity but you don’t meet the income requirements of the major lenders for what ever reason.

Security is via a First Mortgage and interest rates are from 8.75%

Security that can be used can range from Residential Real Estate to Farms to Commercial Real Estate.

Give us a try.

O have always been outspoken about the fact that there is not enough competition in the NZ market as it was.

The non-bank sector was active in product innovation, competitive pricing and providing real choices.

It also allowed those with more than one property to be able to diversify their funding sources. If you had say, six rental properties you could have six individual funders.

This is no longer the case – borrowers are now dependent on a small number of bank funders, which does not allow them to truly diversify their borrowing sources.

The biggest area that the non-bank lenders really helped though was in the area where the banks are too harsh when it comes to lending criteria. The non-bank lenders provided options to people who had been declined by the big banks.

We Have Funds to Lend

The finance company sector has been considerable reduced over the past 24 months but we still have lenders who can help.

Our funders are happy to look at bridging and short term first mortgage residential proposals and they will go up to a loan to valuation ratio of 70%.

They are also still looking at “Lo Doc” proposals.

So if you have been knocked back by the big banks why not drop us a line and let us see what we can do.

The father was on WINZ and needed his daughter’s support for debt servicing to work. She was in stable employment on a good income. Both had clean credit and the daughter was moving back in to live with her father.

Our friendly lender approved the loan conditional upon the daughter becoming joint owner of the property, i.e. she benefited from the transaction too.

Do you know someone looking for a loan in a similar situation?

Contact us using the contact page

They required 100% funding of the purchase price, which was possible due to the equity in the property being gifted.

Both husband and wife were self employed and had a few defaults on their credit report.

Debt servicing appeared fine based upon self-declared incomes although financials provided indicated the income declaration was reasonable.

The successful loan was approved of just over  $190,000 at 10.35% pa for a 30 year term.

Do you know anyone in a similar situation?

Let us know, we might be able to help.

Our Team has years of combined mortgage broking and lending experience, especially in the area of investment.

We are experienced in all facets of residential lending choices.

Our Love Your Client For Life philosophy provides you with exceptional service for the life of your loan and beyond because we believe getting your first mortgage is only the beginning.

Economists and analysts from the major banks all believe the OCR will be held at its current level of 2.5 percent.

Chief economist for Deutsche Bank Darren Gibbs suggests there is little scope for surprise in the Reserve Bank’s monetary policy statement and an official cash rate review.

The focus for markets will however be on the Reserve Bank’s updated economic projections, which were last published in September, and in particular, the central bank’s implied stance on monetary policy for 2010.

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