Indexgroup Newsletter

Hi [salutation],

We have had a busy start to the year with heaps of activity out there in the market place and customer enquiry at all time high levels. The housing market continues to push ahead and I think we are all in for another good year...

1. Broker Profile- Stu Blackburn

Stu joined us last year after various careers with Hirequip, as a Detective Constable with the NZ Police, and the principal of a draught beer maintenance business! He is based in Tauranga and is a keen sportsman who maintains a 16 handicap of the golf course and is a qualified diving instructor. Married to Julie, he brings a real understanding of self employed lending and a passion to ensure that the client is not only getting the best deal, but is looked after and supported in all respects. He is very active in the Bay area and has ambitions to grow his business significantly throughout the region. We look forward to celebrating his successes along the way!

2. Interest Rate View

Much has been made of the Reserve Banks options of late with Allan Bollard's statements becoming more and more hawkish. Essentially the position at present is that he is going to raise the OCR in March unless he sees a weakening in the hosuing market and consumer spending. As that is not going to happen, the markets are already pricing in a rate rise of .25%. Fixed rates have been reasonably stable of late, with most banks absorbing the steady increase in their costs of borrowing on the swop. As a result margins are now pretty skinny (again) with the most likely move in this area being up. On the plus side strong competition is keeping a lid on things with most of the fixed rates already expensive. (above their 5 year averages).

3. If I was a borrower...

I would stick with the 2 year rate at about 8.2%even though these are a little pricey by historical standards. The other option is to go long with the 5 year option at 7.85%, but in my view, if you can handle a bit of risk, you should get the benefit of a 2 year rate under 7% again when you re fix in a couple of years time. With variable rates now certain to rise those with revolving credit facilities should get one of our brokers to make sure they have this part of their loan correctly structured to ensure that no more than necessary is exposed to the higher rate. If you want one of the guys to have a quick look at your situation give us a call on 0800 800 067 and we can give you a 5 minute health check on the phone.

4. Company News

Recent months have seen the appointment of Lousie Dunn as General Manager. With 22 brokers spread all over the country Louise has her hands full it is fair to say. We are also pleased to welcome Donna May and Dion Jones. Donna has worked with us for the past 2 years in her previous role with ASB and it is a real feather in our cap that having worked with all of the brokers in the market she decided to join our team. Dion joins us from Sovereign and brings further industry experience, especially on the insurance side of the business.

5. Insurance

Over the past 6 months we have quietly added insurance to the suite of products we can supply. The reason for this is simple- our goal is to help you into your dream home, secure your future and then assist in creating wealth for all of our customers. By equiping our brokers to advise and arrange your insurance for you we can help protect your future and lay a foundation for wealth creation in the future. You, the customer, has the convenience of dealing with one adviser, and our strong relationships within the industry ensure that you get preferential pricing, underwriting and support. As part of our introduction of these services we will happily assess your current situation for you to ensure that you are getting the best deal available. To speak to one of our advisers call us on 0800 800 067.

Best Regards,