Mike Pero Mortgages confirmed a record $200 million worth of mortgages in November 2006, up from the previous record of $175 million in a calendar month.
Tuesday, December 12th 2006, 3:03PM
by The Landlord
“This is a very strong performance in what has been a relatively soft housing market this year,” says Jeff Staniland, Mike Pero Mortgages chief executive.
“As well as people seeking new mortgages, the number of people reassessing their mortgages as they come off fixed two or three year rates has provided a significant amount of business this year.”
“Home-owners have been seeking advice on whether to move to a floating rate or to refinance on another fixed term.”
Around 80% of home-loans in New Zealand are fixed. While floating rates have moved significantly higher in the past three years as a result of the Reserve Bank’s tightening cycle, fixed rates have been less affected.
“Floating rates are now between 9 and 9.55% at most lending institutions, while fixed rates are up to 1.5 percentage points lower, depending on the length of the term and the lender.”
“But mortgages are not just about headline rates. A small difference in the headline rate can be more than offset by other charges and fees, as well as any costs associated with exiting the mortgage after a few years, as most people do.”
