Reserve Bank Governor Alan Bollard said: “Since the time of the December Statement, financial market sentiment has improved slightly, with increased liquidity in European financial markets. However, the global economy remains fragile and risks to the outlook remain.

“World prices for New Zealand’s export commodities have remained elevated but the recent appreciation of the New Zealand dollar is reducing exporters’ returns. The European debt crisis has also increased the cost of international funding, which will likely pressure funding costs for New Zealand banks over the coming year.

“In the domestic economy we continue to see modest growth. Over recent months there have been signs of a limited recovery in household spending and the housing market. Further ahead, repairs and reconstruction in Canterbury will also provide a significant boost for an extended period, though there may be further delays resulting from the aftershocks.

“Reassuringly, inflation pressures have remained well contained. Inflation has declined and now sits below 2 percent.
“Given ongoing uncertainty around global conditions and the moderate pace of domestic demand, it remains prudent to keep the OCR on hold at 2.5 percent.”

RBNZ – Mike Hannah

When looking at interest rates, you need to consider the actual amount of interest you will pay over the full term of your home loan.
Your mortgage broker is best positioned to help you not only understand the numbers but more importantly to negotiate interest rates on you home loan with lenders.

Your mortgage broker will even help you fill in the paperwork for your home loan and apply for any government grants and concessions.
By following some simple strategies from your mortgage broker you can negotiate on your home loan interest rate and may even substantially reduce the amount of interest you would otherwise pay over the full term of your loan.

• Understanding the numbers, a few things to consider:
• Use a mortgage broker to help you understand the key numbers around your home loan and budget for your mortgage,
• Choose a home loan which offers a low interest rate without compromising on loan flexibility and features that are important for your lifestyle,
• Plan and budget ahead to make extra repayments on your home loan,
• Negotiate a home loan with a free redraw facility, and
• Consider loan features like offset accounts to help save money.

With the current competition in the New Zealand home loan market, banks and lenders are offering competitive home loan interest rates. If you are concerned about your current home loan, talk to your mortgage broker for a free home loan assessment.

Loan Market Group

The year ahead looks quite promising with the likelihood of interest rates staying on hold and lender risk appetites growing.

With many economic forecasters expecting the RBNZ to remain on the sidelines until the third quarter of 2012. This will be a relief for borrowers and first home buyers trying to get their foot in the property market.

Despite uncertainty around the European debt crisis and how it will affect the funding capacity of the New Zealand banking sector, consumers should remain upbeat with current interest rates on hold.

First home buyers are especially encouraged to explore all their options when it comes to their lender and buying the right property.

With the current competition between the big banks and lenders, a mortgage broker can help you negotiate a competitive home loan deal.

For a free home loan assessment, talk to me today and get an expert on your side.

Loan Market Group

Yet the idea of embarking on a renovation can be a little overwhelming, this is especially true if your valuable free time is limited or if you have never renovated before.

That practical, clean, fresh bathroom you’d love to live with is closer and easier than you may think. The solution is to start with some planning.
First write a list of ‘must haves’. Then make a second list of ‘would likes’. Finally put down a few words that describe how you would like the space to feel, picture yourself walking into your new bathroom and put that image into words.

Now if you’re brave, its time to start the process of selecting all the bathroom fittings, fixtures and finishes. Look for items that get as many ticks as possible on all three of your lists. The ones that have the highest number of ticks are likely to be your ideal purchases. If you run into confusion or doubts at this point, don’t worry it’s natural.

The good news is you’re not alone. What you need to do, to get back on track is get the help of an unbiased, experienced professional – one that is working just for you – not trying to sell you a tap, tile or bathroom package.

If the idea sounds like it would be a relief then a consultation could be all you need to get your head straight and give your ideas a bit of a polish.
Or, if it’s the look and style you’re stuck with then you may just need have someone else translate the look you like or style you love into design inspired and budget conscious tiles, taps, bench tops and vanity units. It’ll give your project the X factor and let you get on with the other important renovation decisions you need to make.
Alex Honey – Sterling Interiors

Reserve Bank Governor Alan Bollard said: “As foreshadowed in the September Statement, global conditions have deteriorated.

Continuing difficulties related to sovereign and bank debt in a growing number of European economies have resulted in high levels of volatility in financial markets. There has also been a softening in international economic activity, including in the Asia-Pacific region.

“Global developments are having some negative impact on New Zealand, though to date it has been limited. Business confidence has declined and investment spending is likely to remain weak for some time. In addition, tightness in international markets means funding costs for New Zealand banks will increase to some degree over the coming year.

“There remains a high degree of uncertainty around the global outlook and, as discussed in the scenario in thisStatement, there is a risk that conditions weaken further.

“Domestically, economic activity continues to expand, though at a modest pace. Although off their peaks, export commodity prices remain elevated. In addition, the depreciation of the New Zealand dollar provides some support for the tradable sector of the economy. Over time, repairs and reconstruction in Canterbury will also provide a significant boost to demand for an extended period.

“Annual headline inflation is estimated to have returned within the Bank’s 1 to 3 percent target band in the December quarter. Underlying inflation continues to sit close to 2 percent. In addition, wage and price setting pressures have remained contained.

“Given the current unusual degree of uncertainty around global conditions and the moderate pace of domestic demand, it remains prudent for now to keep the OCR on hold at 2.5 percent.”

Mike Hannah – Reserve Bank of New Zealand 

Many home owners are switching due to the competitive landscape with banks launching almost daily special offers and discounts on floating interest rates.

But is floating the right move?

It’s certainly something you may need to consider carefully if your current fixed rate mortgage is due to expire in the coming year, or if you are in the market for a new home.

It is always helpful and important you consider the pros and cons of each type of mortgage before making the leap.

Floating home loans – Pros and Cons

PROS

• Your home loan repayments will fall when interest rates fall (when banks pass on interest rate cuts)
• These loan types can be very flexible and will often allow unlimited additional repayments
• You may have the opportunity to reduce your home loan balance faster
• Given the current financial market, the average variable interest rate is generally lower than a fixed home loan rate

CONS

• If you have borrowed at or near your repayment capacity, it is risky if interest rates do rise
• Your home loan repayments will rise if interest rates rise
• If interest rates rise quickly, your home loan repayments over a certain period of time may be more than those of a fixed interest rate home loan over the same period of time

Fixed home loan Pros and Cons

PROS

• These loans offer home loan repayment certainty, which means you will know how much your loan repayments will be for a fixed period, regardless of market interest rate changes
• This loan type will protect you against interest rate rises
• You can pick the term of your fixed rate home loan depending on what suits your finance goals. Loan terms are available from 6 months to 10 years

CONS

• This loan type may be less flexible than a variable home loan rate, limiting additional repayment options and excluding the option for a redraw facility
• If interest rates go down, you will be locked into a fixed term
• Over the term of your loan you may end up paying more than if you had selected a variable home loan, even in a rising interest rate market

Loan Market mortgage brokers will help you to further refine your needs and match them to the right type of mortgage package for your financial situation. Talk to your Loan Market mortgage broker for a free home loan comparison today.

Loan Market

DIY is not for everyone; in fact it’s not for most people. Here are some ideas to help you plan for your project and to help you decide whether to DIY or not this holiday season.

Whether designing your dream wardrobe or remodelling your kitchen you need to start by giving yourself and your project a sense of order and progress. Beginning with a plan that lists all of the areas you would like to see changed.

You could make your list by room like bathroom or kitchen if the entire space needs a complete makeover. Or, if there are specific items that are up for renewal then list them by item order, such as new carpet or change all the lights.

Make sure you put everything on the list don’t worry if it’s just a small thing like changing a few door handles put it down.

Next take your list and write a number next each item to prioritise. Approach your priorities with consideration to your time frame for completion.

If you plan to complete everything in twelve months and can accept living in a ‘work in progress    environment’ for that time then put everything that involves structural or removal type process

at the top. It makes sense to do these types of tasks before new paint or carpet.

Alternatively, if you are not embarking on any major renovating or ‘dirty work’ changes write your list either by room or by item. Consider what would make you feel most like you were achieving your goal as your guide for prioritising.

Now you have your priorities review the list and mark each item with either an A or a B according to who is going to complete the task A = DIY B= Breathe a sigh of relief someone else is doing that  job!

Beware of over enthusiasm in the beginning! The idea of stripping and polishing your own floorboards may be appealing and look like a cinch on a TV show. However your patience, perfectionism and persistence are going to be tested.

Consider the value of your free time vs. your need for a high quality result. If in your heart you know that you will always see and regret the poorer quality of your DIY efforts then it’s time for the professionals.

Similarly if your mantra is Saturday and Sunday’s are for sleeping then again get the ‘blue shorts   brigade’ in to do the work.

Alex Honey, Interior Designer

Meat cooked on a BBQ can increase the risk of carcinogenic chemicals forming inside the muscle of the meat. This is most likely when the meat is grilled slowly over a flat plate.

Barbecues are an integral part of our culture.  So if you enjoy a barbecue this summer try some of our healthier ideas. To reduce the risk and still enjoy the many other benefits of healthy outdoor barbecuing follow these tips:

• Pre-cook the meat and finish it off on the grill. Sausages can be part boiled.
• Always check you have enough fuel for the BBQ and ensure the plate is as hot as possible
• Trim any fat off the meat to prevent it splashing onto the coals and creating naked flames and singed eyebrows
• Avoid cooking directly over coals and flames – if using coals allow 2 hours before cooking for the coals to heat up.
• Grill fish and veggies in foil, this will lock in the flavours for a nice summer barbecue

Using an electric grill instead of the barbeque is also beneficial, as there is usually a special tray to drain off dripping fat. Although it doesn’t impart such a smoky flavour as barbequing, the food is healthier and just as delicious.

Next time you plan a barbeque, you can also try some veggie skewers and seafood, everyone loves a festive seafood barbeque and with so much choice you can be sure to keep everyone one happy.

There are hundreds of options from BBQ prawns to fish fillets, typically cheaper, but just as delicious. Sprinkle lime juice, Cajun seasoning, and a little olive oil over the fish then wrap it in foil to cook on the hotplate for 10 – 15 minutes, depending on the size of the fillets. Wrapping in foil is healthier, keeps the fish moist and protects it from any meat you may be cooking at the same time.

Vegetarian kebabs are lovely on the BBQ also, choose vegetables that hold their shape like capsicum, spanish onion, button mushrooms and zucchini. Haloumi cheese marinated with these other vegetables threaded through kebab sticks is delicious and guaranteed to be enjoyed by even the fussiest of eaters – meat eaters included.

Summer is always a good time to fire up the barbeque and cook some great BBQ foods and maybe next time you have your friends around you can try some of these new healthy BBQ tips. Enjoy!

By: Judy Davie

In his statement Dr Allan Bollard said, “Risks toNew Zealand’s economy and financial system have increased in recent months.”

However he went on to signal some relief ahead in the coming months as the New Zealand Banking System is now better placed to weather global shock, as banks have increased their capital buffers and lengthened the maturity profile of wholesale funding.

His comments also added to the view that the RBNZ has no immediate plans to raise the Official Cash Rate (OCR).

The RBNZ held the OCR steady at 2.50% at its October board meeting given ongoing global economic and financial risks. Most economists are now expecting the first rate hike late in the first quarter of 2012.

To discuss your interest rate strategy following the latest interest rate announcement, or to find the right home loan for your next property purchase, contact me for a personalised home loan assessment.

* Reserve Bank of New Zealand Financial Stability Report November 2011.

Keep up-to-date with changes in interest rates by talking to your local mortgage broker about special offers and current interest rates in New Zealand. Because your financial situation might change its always best not to just set and forget your mortgage. Interest rates are a major consideration for borrower’s when making a decision to refinance, so it’s important to understand how they work.

Most borrowers are aware there are two types of interest rates – variable and fixed. Each type is based on different financial market indicators: variable rates are driven predominantly by Reserve Bank policy while fixed rates are driven by the predicted trends in the wholesale money market.

Mortgage holders concerned about rates heading upward should consider getting a home loan health check. You still can negotiate a mortgage rate that is anything from 0.70 per cent lower or more for large size loans.

A Loan Market mortgage broker will help you navigate through the discounts and specials on fixed and variable interest rate loans to ensure your home loan is competitive and suits your lifestyle.

Loan Market