Hi [salutation],

With Christmas fast approaching and the Annual Mortgage Rate Massacre (where the banks drop their pants to get your buisness) now in full swing it has been a pretty interesting few months for borrowers in a market now widely regarded as the most competitive lending environment in the world...

Lousie joined us in September of last year with over 20 years experience in banking, most of it with ASB. As`well as being our Senior Broker she also handles both our training and broker liason roles. When shes not buried in the APM business she somehow finds time to breed horses, and look after her twin boys. With her extensive commercial back ground she is a natural property investor and those lucky enough to secure her services often rely on her experience in structuring and managing complex transactions.    

There seems little if any chance of a drop in the OCR before the middle of next year meaning floating rates are likely to sit at current levels for the foreseeable future at least. Swop rates (which is what sets fixed rate lending) have been quietly pushing out for the past quarter will this trend likely to continue. The real action has been in the nature of competition between the banks and again the 2 year rate has been the battle field of choice. The trend of low margin lending has continued unabated meaning that consumers are still able to pick up 2 year rates at below 8% and I imagine that these will continue to be available for some time in light of the commitment all of the major banks have made to competing hard for market share.   

I wouldn't be expecting interest rates to drop for quite a while! I would also be starting to think about how much I want to borrow given that the longer the current trend of rising house prices and a strong property market continue, the further the fall will be when it eventually (inevitably) comes. Now is certainly not the time to be any more leveraged than you have to be. With regards rates the 2 year rate looks best value of the short term options, although if I had rentals I would also look seriously at the 5 year rate at somewhere near 7.5% for the additional security that provides.

We have had a busy quarter here at APM with a number of new franchisees joining us in Whangarei, Auckland, Christchurch, Tauranga, and Taupo, pushing our numbers to 19. Given the growth of the business we have also spent the past few months recruiting a General Manager and expect to make an announcement on that position shortly. We have also conducted a number of polls both from within our client base and nationally, all of which indicates that we are doing a great job and in some cases exceeding your expectations. As we are always looking for ways to improve the business and welcome your feedback all those who email their response to the following question to freeshirt@adamparore.co.nz will receive an APM polo shirt for their trouble:

What type and level of service do you expect from a mortgage broker? 

As part of the on going development of our service, and in direct response to what you have told us you want from us, we have developed a Wealth Creation program designed to help you pay off your mortgage in 10 years. The result is  Wealth Creator™, a debt reduction strategy which aims to combine the benefits of a structured approach to savings, with the gains which can be realised from investment in residential property, to achieve the goal of being debt free within a 10 year timeframe. To make this both achievable and attainable for all we have set a portfolio limit of no more than two rental properties. If you are keen to see how Wealth Creator can work for you then contact your APM Adviser of email wealthcreator@adamparore.co.nz to arrange an appointment.

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How Much Can You Borrow?

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Property Evaluation

12 Mortgage Busting Strategies

Home Buyers Guide