Hi [salutation],

Welcome to the first edition of APM's Bi- Monthly newsletter, which, it is hoped, will keep you fully informed of whats happening both here at APM, and in the mortgage and financial markets as well. Along the way we're not adverse to having a bit of fun, and giving those who deserve it a bit of a spray to boot... 

The last couple of months have been a little hectic, hence no newsletter of late. The big news is that the franchise system is now underway- as you have probably noticed. Those of you who haven't already should quickly check out our website to familiarise yourself with the new operation...

I am pleased to welcome our first franchisees on board- Louise Dunn and Kirk Vogel. Both are Auckland based and have now completed Module One of their training and are ready to give you a hand with your mortgage...

Starting this week are Julie Ambury and Russell Bach. Julie will focus on Hamilton and surrounding areas while Russell will join the Auckland team. Both will training here at head office for the next month or so...

If you have been concerned previously about whether you have been getting the best deal on your mortgage or if you might have been able to do better then you need no longer worry! We will guaratee you the best deal on your mortgage or we will pay the difference for the 1st year! Sounds good- click on the link above to see what else we can do for you...

Is it just me or does the BNZ's latest attempt to remidy their disasterous 'Unbeatable' campaign of last year look and sound alot like our Mortgage Guarantee? They've even got a stamp icon hanging off the page like us! Come on fella's how big is your budget again?

Now that the excitement (what?) has subsided what exactly does it all mean. In a nutshell it appears that we now face an unspecified period in which Labour will control the Treasury benches and run another minority government which relies on just about everybody for support in order to get anything done. In reality, whilst this is manageable, it inevitably means that nothing groundbreaking is likely to be achieved in the short term. It also means that there will be no relief from; Employment legislation, which is restrictive to say the least and the RMA, which is a nightmare in terms of both time and cost for anyone who is trying to build anything! In short we are staring down the barrell of a few years of status quo.

Nothing much so far but with inflation risk on the upside, and the likely stimulatory effect of Labours Working for Families and Student loan packages due to hit next year, the upside risks will remain for some time. Couple this with the Reserve Banks view that we are likely to breech the 1-3% inflation target and run at about 4% for the medium term and it is hard to see a drop in floating rates anytime soon. Throw in the likely inflationary pressure from oil price rises and its not looking especially flash. Add in the trade deficit blowout and it now appears unlikely that we will get by without further increases in the cash rate. All in all it is beginning to look like it may get quite ugly...

If you are on a floating rate, and won't be repaying lump sums in the immediate future you should absolutely lock in a fixed rate option without hesitation! The issue now becomes which one? Depends on your circumstances. 2-3 year rates are starting to move out a bit, and although these are no longer at bargain basement levels they still look good value. Those willing to look a little further into the future should only consider 4-5 years if they can get it under 7.00%. Above this there seems little reward for the considerable risk such a committment entails. Regardless of what you choose don't be on a floating rate unless you have to as you will not benefit from an interest rate drop for at least 12 months and will almost certainly get stung again within the next few months.

If you want to know exactly what the best mortgage for your circumstances is then you need to book an assessment with Mortgage Navigator™. It is an industry leading software application which will analyse the hundreds of different loan products we have and select the one that best suits the criteria that you tell us, you need.

If you want to take part in our monthly opinion poll just email your response to the issue below to: info@adamparore.co.nz - we'll print the best in the next newsletter.

Will the Reserve Banks next movement on interest rates be up or down?

This Issues Links

How Much Can You Borrow?

Become a Broker

Mortgage Navigator^TM

Property Evaluation

12 Mortgage Busting Strategies

Home Buyers Guide