First home buyers and those selling homes are about to benefit from first home buyer packages being offered on the market as of today. The lending market is certainly heating up, with more competition from the banks they are really out there trying to buy your  business now which is a complete turnaround from earlier this year.

Mortgage Express, our lending partner reports that ne of the main stream banks launched a new incentive package for First Home Buyers yesterday consisting of:

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From Suzanne Isherwood of Mortgage Express:

With the banks economists predicting one thing and the rates doing the opposite, it is quite confusing at the moment to try and understand what the rates might in the future, especially so for first time buyers. The ASB Economists had this to say:

The Reserve Bank of New Zealand (RBNZ) began lifting the OCR by 25 basis points in both June and July, bringing the OCR to 3%. We expect the RBNZ to take a break from lifting the OCR in October and December. We expect rate hikes will resume in January, with the OCR steadily increased by 25 basis points at each meeting until the OCR reaches 4.5%.

Following the lifts in the OCR, floating rate mortgages have started to increase, and we expect the floating mortgage rate to continue to rise over the next year in line with future OCR rate increases. This may prompt some borrowers to move to fix the floating part of their debts. Our calculations suggest there is not much cost difference over a 2-year horizon between floating and fixing. This means the certainty of short-term fixed rates now comes at very little cost. In addition, the recent decline in the 2-year rate does marginally increase its attractiveness, although we do emphasise a large degree of uncertainty remains around the pace of OCR increases over the next year.
Beyond the 3-year mark, fixing remains expensive (despite recent declines in rates) but there is the benefit of more certainty if that is an important factor in the decision. Indeed, if this is something you are willing to pay a premium for, then now is an opportune time to fix as there is no guarantee 3 to 5 year rates will remain this low for long.
The trend over the next year will be for shorter-term mortgage rates to start lifting back to average, or slightly above-average rates. With long-term fixed rates relatively high, it is really only the floating or short-term fixed rates that offer value. Priority will be dictated by borrowers’ preference for maximising the chance of low debt servicing costs or smoothing the inevitable increase in mortgage rates.

Current rates:

Floating   6.10%   Westpac Choices
6 months   6.25% Wpac
1 year   6.45%   All banks
2 year   6.85%   All banks
3 year   7.15%   National Bank
4 year   7.45%   ASB & Wpac
5 year   7.75%   All banks

The million dollar question that

we are asked at the moment is

“what do you think will happen to the interest rates

this year, how high will they go?”

A lot of people are uncertain about what’s happening with interest rates so they are going on the floating rate to watch and wait. [Read more →]

It may seem difficult, or even daunting, but there are many advantages to buying a house at auction. When the buyer and seller meet, and the hammer comes down, the true market value for that property will have been established. It’s a proven system of success.

Buying at auction avoids the traditional offer/counter offer negotiation process. An auction is an exciting, competitive environment where everything is out in the open. You can see your competitors and keep track of each and every bid. No deals behind closed doors!

Here’s my advice!

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Unfortunately, when buying property the chances are you will need to borrow money. This debt can be the largest debt you will ever have, and take the longest to pay off, so give the finance question the respect it deserves. And getting the best deal from the bank may save you thousands.

A Mortgage Broker can help lead you through the mortgage application process independently from the banks, get you a great deal and work with you to reduce your debt.

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What’s the difference between a Rating Valuation and a Current Market Valuation? Well, it can be confusing, these are two of many types of valuations that buyers and sellers might see. What the difference?

You might need a valuation for a property when you’re  thinking of buying or selling, but there are other reasons to get your property valued, for example, you may wish to borrow money or insure your property and for this you’ll need a Current Market Valuation.  And your local council levies their rates based on the valuation of your property called a Rating Valuation (RV), up until a few years ago it was called the GV or Government Valuation. Occasionally there are disputes over property, for example matrimonial disputes, commercial disputes and other issues that require a valuation.

Let’s look at the GV or your rating valuation:
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