Auckland's discounted fixed mortgage rates won't last
January 15, 2013 at 3:58 PM
Auckland (Takapuna) – LoanPlan is currently achieving discounted fixed mortgage interest rates for clients in the region of 5.05% fixed for two years (subject to certain conditions), compared to bank advertised interest rates of around 5.45% - but how long it will last is anybody’s guess.
Auckland mortgage broker and principal of LoanPlan, Christine Lockie, says banks are prepared to discount for the right deal at the moment, but she didn’t expect it to last.
“Based on my experience of more than 20 years in the mortgage and loans market, I expect bank margins will start tightening – especially for variable and short term fixed interest rates – and those discounts will disappear.
“Here I’m referring specifically to the Auckland market which is unique to Auckland. We are experiencing good economic growth at the moment – ironically driven by high demand in the local housing market – and its that growth which will begin to put pressure on interest rates.”
Ms Lockie said job demand, an influx from Canterbury and other regional centres around New Zealand, and immigration would continue to fuel growth.
“In the rental property market we’re beginning to now see an oversupply of rentals, which can initiate the sale of rental properties. With more properties on the market, and interest rates where they are, its looking like a rosy summer for first time home buyers."