How things change in a month. The conclusion of my last news letter was go the All Blacks. Well the Rugby World Cup has been and gone, a worthy victory to South Africa, perhaps England played their final the week before against the All Blacks! We all now sit and wait the announcement of the new All Blacks coach, perhaps the thing we could do without is the continuous media comment.

Interesting property market. Whilst perhaps the urgency is not at the same level in the local market, prices still seem to be holding. With it being “spring / summer” banks are offering carrots of cash back. The thing to note with the cash back is that it is repayable on a pre rata basis should you repay your lending inside the following 3 years. My preference is for lenders to offer the lowest rate rather than cash back. That has more relevance to a client’s ongoing position. Unfortunately, competitiveness means that so long as it is lending below 80% loan to value, it is owner occupied and you have your income lodged direct to bank account then the cash back is there.

How low will interest rates go? I do not believe mortgage interest rates will go a lot lower. We currently have specials at 3.39%, I believe we will continue to have these quick-fire specials happening, how low, yes possible to get to perhaps 3.05% over next 12 months on a special basis but I would be very surprised to see a rate below 3%.

Well getting very close to Christmas, that means everything becomes a rush. We are here to help if you require so please don’t hesitate to contact us.

Cheers

Charlie & Michelle