Mar 09 Further OCR cut positive sign for buyers

March 09

Mike Pero Mortgages is extremely happy with the latest rate cut by the Reserve Bank, which this morning reduced the Official Cash Rate (OCR) by a further 50 basis points, from 3.5 per cent to 3 per cent.

Mike Pero Mortgages Chief Executive Shaun Riley says today’s rate cut reinforces that right now is a very good time to buy property, and if existing and prospective home owners are
worried about their employment, in most cases they can mitigate this by ensuring they have adequate income insurance.

“Lower house prices combined with interest rates at very attractive levels have significantly improved home affordability,” he says.

“Banks have already passed on most of previous Reserve Bank cuts, but I’m expecting there will be further cuts following today’s announcement. It’s also very good news for those on
floating rates or coming off a fixed rate in the near future.”

Shaun Riley says in the current economic climate some people are feeling hesitant about investing in property, even though interest rates are low and house prices are dropping.

“People are worried about job security at the moment, so they may feel uncertain about buying a home or refixing their current mortgage. In most cases we can help with income
protection, which takes the stress away for those faced with redundancy or sickness.”

Shaun Riley says the company has noticed an increase in enquiry after the last OCR rate cut.

“People are feeling more confident about investing in property due to the low interest rates and drop in house prices.

Shaun Riley adds there have been a lot of phone calls from people wanting advice.

“Some people are still very wary about buying property. Potential buyers are seeking expert advice as there are significant variations between lenders and their rates and conditions.

They just want to talk to a professional broker who has first-hand knowledge about the market place,” he says.

“At Mike Pero Mortgages we help our customers work through the options and come up with a plan that will allow them to benefit from the falling rates or find a lender that suits their
current position.”

He adds that Mike Pero Mortgages now offers a number of other services and financial products, which provides the customer with the total package.

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