Interest Rate Update:

Things have been pretty quiet on the interest rate front of late. Fixed mortgage rates have edged lower this month, with floating rates at levels not seen for 50 years. The 1 year rate is still the cheapest, and all fixed rates out to 3 years remain at or below the floating rate. Given these considerations, we do see some merit in fixing. Update your plan before re-fixing so that you know how to structure your mortgage.

There is aggressive competition amongst the banks for business which enables you to negotiate substantial interest rate discounts. Make sure you ask for discounted rates or you won’t get them!

An item of interest is Reserve Bank Governor Graeme Wheeler announcing to a business group that one of the tools available to him to reducing the housing bubble is to require homeowners to have a 20% deposit.

Some lenders have responded by offering discounted interest rates to home owners with 20% or more equity. If you fit this criteria, then ask for a discounted rate… ask for a discounted rate anyway. The carded interest rate is only an offer!

Outlook

Low interest rates remain a key stimulating factor, though consumers are still moving cautiously with many still focussing on reducing their debt while rates are low.

The New Zealand economy remains caught between positive factors such as low interest rates and pending earthquake rebuild versus headwinds from a volatile and worrying global scene; and a weak national balance sheet this picture is providing mixed economic signals. Meanwhile the as the unemployment rate continues to drift down over the coming year, a slowly improving and evolving labour market will keep households focused on rebuilding their savings buffer.

Progress

Over the next few days our new website will go live. This is the first of three development stages which will result in online access to your plans for updating purposes. In the first instance the new website features a mortgage calculator that enables users to see how quickly they can pay their mortgage off with Freehold Express in just a few clicks.

Client Loyalty Program

Please be aware that we run a client loyalty program whereby we give our clients a $100 Prezzie card (redeemable anywhere Visa is accepted) for every friend or family member who are referred to us that put a plan in place. We appreciate your support.

ASB

It comes as little surprise to us that the Professional Advisors Association voted the ASB lender of the year at their annual function held on the 17th of May. We feel this award was well deserved.

Tax & Business Opportunities

It is the beginning of the financial year so if you need a hand with income tax, annual returns and the like, please contact our accounting practice team. We can assure you of an excellent service and great fixed price rates.

Given the abounding business opportunities in this market, the EAS team have done a lot of business start-ups recently. As there is not a lot of meaningful education surrounding this process, the EAS team will be running business start up seminars. If you are thinking of starting a business or you need help with your existing business then please register your interest with Allison Soal.

E: allison@fhx.co.nz
M: 021 868 935
O: 03 943 6300
http://www.exas.co.nz

Please don’t hesitate to contact us if you have any questions regarding your Freehold Express Plan or mortgage.