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Mortgage Interest Market Monthly Summary

Interest Rate Update for March 2016

March 31, 2016 by · Leave a Comment 

Home Loans Today Mortgage Interest rate update for March 2016

March Interest rates:
Variable Interest rates 5.65%
1 Year Fixed rate 4.15%
2 Year Fixed rate 4.39%
3 Year Fixed rate 4.65%
5 Year Fixed rate 5.15%
Reserve bank dropped the floating rate 2.25%. Most of the large banks did drop their floating rates by .20%. This means they did not pass on the full interest rate drop to their customers. These rates are an indication on what is happening in the New Zealand financial market.

What is happening in the Auckland and New Zealand market.

– Unemployment is at its lowest since 2009.
– Net migration into New Zealand 50% of new immigrates are living in Auckland.
– Most immigrates are coming from India and Europe with China in third place.
– There is an increase in existing New Zealanders coming home and fewer people leaving New Zealand to go other countries.
– Building contracts are up in Auckland but not enough to meet the current demand for housing.
– Auckland market has slowed due to three main reasons:
1) Capital gains test now in law for the two year test
2) Foreign overseas buyers now require a bank account and IRD number to buy a property.
3) New lending requirement for landlords requiring equity in existing properties requires a minimum deposit of 30%.
4) Chinese Government has made transferring money out of China harder to move to other Countries.
– The Auckland market is 10% down in total number of house sales down from last year.
– Auckland house values were dropping in value last month.
– Fringe area prices of Auckland went flat.
– Types of buyers as a percentage 39% had multiple properties.
– 24% were first home buyers.
– 23% were people were where moving. This had slowed downed meaning people were staying put and not moving.

What’s happening this month:
If you are looking to buy your first home HomeLoansToday would be please to help you through the mine field. Call Kevin on 021532569 anytime to make an appointment.

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