RBNZ’s Arms Stay Folded
The Reserve Bank today left the Official Cash Rate (OCR) unchanged at 2.5 percent.
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
Home Buyers Guide to Interest Rates
Buying your home is an exciting experience and it makes good financial sense to understand the numbers around your purchase, these include interest rates, fees and charges that may be associated with your mortgage.
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
Property Outlook Positive for 2012
Lower interest rates and growing consumer confidence will help stimulate the home finance market in 2012, says leading mortgage group Loan Market.
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
Bathroom Renovations – The Basics and Beyond
So you know your bathroom is in desperate need of an update – but where to start? Planning, picturing and process is the answer to an inspiring result and stress free renovation experience. Living with a tired, dated or dripping bathroom can really drag the value of your property down.
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
