BORROWERS Mortgage Commentary 20 / 2014
Borrowing Costs
Application Forms
Apply Online
Type of Loans
Like a Loan?
Fortnightly Newsletters
Loan Calculators
Broker Help Zone

Contact us
Switch to Investors

General Finance Mortgage Commentary

Issue 2014 /20       7 November 2014


Welcome to the twentieth fortnightly General Finance Mortgage Commentary for 2014.  We aim to keep you informed on developments at General Finance Home Loans and the mortgage market in general. 

The Money Market
This morning (3.30 pm on 6 November 2014) the money markets were at the following levels:
Official cash rate    3.50% (unchanged)
90 day bill rate       3.68 (unchanged)
1 year swap rate    3.74 (down from 3.89)
3 year swap rate    4.00 (down from 4.18)
10 year bond rate   4.00 (down from 4.03)
NZ/US dollar      0.7695 (down from 0.7825)

Interest Rates
Last week the Governor of the Reserve Bank reviewed the Official Cash Rate (OCR), and left it unchanged at 3.50%. What was interesting were his comments implying that if rates were to be increased, this was unlikely to occur until the last quarter of next year. This is good news for those with mortgages.  Our interest rates may in fact be too high, given our low inflation, our easing exchange rate, and the economic outlook not being as positive as it was six months ago.  Maybe next year our Governor should be looking at lowering the OCR.

Auckland Rates Notices
Over the current year, the Auckland Council has been revaluing properties in the Auckland area. This includes all property types, not just residential properties.  There has been considerable press coverage on this, as some increases will be substantial - over 50% in some cases.  Many homeowners, and quite rightly so, are concerned with how this will impact on their rates.  Council valuations will be mailed to property owners in the middle of next week - 11 and 12 November. 

E-Valuer a Useful Tool
There is a useful tool for those wanting to obtain an idea of what a property is worth, but requiring more information than just a council valuation and not wanting to go to the expense of obtaining a registered valuer’s report. This tool is E-Valuer, provided by Quotable Value New Zealand. You can sign up for this, and while the cost is normally $49.95 per valuation, there is currently a special at $46.70. The E-Valuer report will provide you with an estimated value, a valuation range and more importantly a list of comparable sales. We find this a useful service.

Asset Lends
There are instances where a borrower has plenty of equity in their property or properties but currently have little or no income.  They may have a project in mind, such as purchasing a small business, a franchise or requiring funds to do up a property, to either let or sell. This is where we come in.  We are happy to assist with the traditional type of asset lending proposition. Due to the demise of the finance company sector, and solicitors’ lending, we are now one of the few lenders doing these types of transactions.  We would be pleased to assist.

Mortgage Interest Rates
For updated mortgage interest rates, either for new business or applicable to your existing loan, please contact your Lender (below) or the General Finance Limited Loan Administration Department.

As everyone's personal circumstances are different and the tax treatment of their affairs is always determined by their own circumstances, you should not act on any comments made in our Commentary without obtaining your own independent professional advice.

General Finance Limited is a Registered Financial Services Provider, with registration number  FSP8882.