Apr 09 OCR cut means increase in business

Apr 09

Mike Pero Mortgages is looking forward to the phone ringing off the hook if the latest rate cut by the Reserve Bank is passed on by banks to borrowers.

Mike Pero Mortgages Chief Executive Shaun Riley says that following the last rate cut, the last two months have been very busy and hopes that today’s rate cut will ensure this trend continues.

“We’ve definitely been noticing an increase in business thanks to the falling interest rates, positive migration, better home affordability and low prices.  We have settled over 25 percent more business than in the first two months of the year and enquiry levels have also rapidly risen recently,” he says.

“Many of these enquiries are investors, who are also returning to the market to snap up bargains, with many properties now cash flow positive.

“There is a strong demand for buyers to own their own homes and cuts to rates can only help the property market.

“If clients are looking for certainty in their monthly mortgage payments we are recommending they get a fixed rate mortgage.  However, with the Reserve Bank stating that the OCR is likely to be low for the next 18 months at least, a good strategy for some borrowers is to fix for a short-term now, followed by a longer term next year.  For people looking to take maximum advantage of current low rates, there are good floating and short-term fixed rates, and it seems that these will remain low for some time,” he says.
Shaun Riley says floating rates could go lower still depending on future OCR cuts, however this is largely dependant on the banks overall funding mix and cost of funds.

For more information contact:
Shaun Riley
Chief Executive Officer
Mike Pero Mortgages
(09) 306 6698 or (021) 287 8727

Mike Pero
(027) 645 3737
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Natalie Harding
Mike Pero Mortgages
Marketing Manager
(03) 365 4547 or (027) 498 4478