Why Choose us?

 

1. We are  loan experts with twenty five years of  bank experience in home and commercial lending.

2. We make your loan raising exercise hassle free.

3. We can examine and restructure your loan, cutting years off your mortgage and save thousands of dollars.


Welcome to New Zealand’s favourite Mortgage Website
 
In current scenerio, where banks change their  lending policies every other day, raising a home loan, business loan or commercial property loan and getting a good deal is a complictaed exercise.  That is why you need services of an experienced financial adviser who has up to date knowledge of lending industry, understands lending criteria in depth and can arrange best offer for you while you relax at home.
 
Our experts at Cherry Mortgage Solutions with wealth of knowledge and extensive experience (20 years as Bank Manager in New Zealand, U.K/overseas) take stress and confusion out of your loan hunting exercise and make it a simple and easy process. We fully understand, every borrower has a unique situation and work accordingly.

With our strong relationship with lenders we can arrange home or residential investment property loans even upto 90%. We also arrange business loans and commercial property loans at most competitive terms and interest rates.

We take special care of first home buyers, and guide them at every step of home buying process. Our solutions for your mortgage or Business Loans are designed around your unique situation and needs. We also examine for free, your current loan structure and if needed restructure it which can make you pay your loan faster and save many thousand dollars.

Cherry Mortgage are one stop solution for both your loan and insurance needs. We cover all your risks by suitable insurance covers like, life cover, trauma cover, income protection, mortgage protection and medical cover from a range of prominent insurance companies at most competitive prices and take over all hassles of related paperwork.

Contact us on 09 625 3800 or
enquire online and we will make it a stress free pleasant experience for you. We are available all seven days of week and can come over to you.
90% Home Loans at Cherry MortgageLatest on Cherry Mortgage

June 12, 2014

Reserve Bank of New Zealand raises OCR to 3.25%

 The Reserve Bank of New Zealand raised the official cash rate for a third time while keeping its track for interest rates broadly in line with its March projections, suggesting the bank sees no need to pause in removing stimulus in an accelerating economy. The New Zealand dollar jumped three quarters of a cent against the US dollar following the announcement.

 Governor Graeme Wheeler raised the OCR to 3.25 per cent, as expected, saying as inflationary pressures are expected to increase, "it is important that inflation expectations remain contained and that interest rates return to a more neutral level."

Gross domestic product grew an estimated 4 per cent in the year to June, and has "considerable momentum," he said. While low interest rates had played an important part in supporting growth in the past few years, "more recently, growth has become more self-sustaining and very low interest rates are no longer appropriate given the rise in inflationary pressures."

 Cherry Newsletter June 2014

   Current Mortgage Interest Rates* as on 6th June 2014

Variable                      5.50%

6 Month Fixed             5.25%

1 Year Fixed                5.35%

2 Year Fixed                5.55%

3 Year Fixed                5.90%

4 Years Fixed               6.35%

5 Year Fixed                6.70%

*Conditions apply

These are not published rates of the banks. But Cherry Mortgage will be able to get you above interest rates and may be   even better if loan amount is high and subject to certain other terms and conditions.

Economic Scenario

The New Zealand economy has been recovering from the recession. But slumping house sales are a significant risk to our optimistic outlook for the economy. House sales, which lead economic growth by around six months, have slumped by nearly 20% in the last six months according to New Zealand Institute of Economic Research (NZIER).

New Zealand inflation is expected to edge up over the coming year and lead to higher interest rates as the economy gathers momentum, according to the Reserve Bank's latest quarterly survey. An interest rate rise is almost certain from the Reserve Bank's next OCR announcement on Thursday thus taking Official cash Rate (OCR) to 3.25%.

Will such hike continue at every review in coming months?  Economists have mixed views on whether there will be increases in July and September.

Interest Rate Dilemma

While the Reserve Bank of New Zealand is increasing interest rates gradually resulting in in floating and short term interest rate hikes, the long term interest rates in international market are declining. Interestingly the European Central Bank (E.C.B) has passed a historic milestone by imposing negative interest effectively meaning it is charging interest to banks to keep their money at the central bank. This has been done to encourage European banks to lend money to businesses instead of keeping as deposit.  The E.C.B have made it very clear that they will continue to squeeze interest rates down to near zero, or even negative, levels until next year and perhaps beyond.

As such New Zealand banks now can borrow cheaper in international market in medium and long term. Consequently, the medium and long term mortgage rates have come down during last one month. We can get three year rates below six percent and two year rates below 5.6% for a good size loan and under 80% LVR. Both these rates are very attractive currently and we do not know when these can start rising again.

Interest Rate Strategy

It is most opportune time to fix interest rates for two to three years which are available under six percent. Interest Rates are going to increase in long run, so getting certainty of repayments for next few years at least will be prudent. We have been able to get 5.90% for three years and under 5.6% for two years. 

Keeping a part of loan on floating or revolving is also good idea in case you are expecting some extra funds to pay off your loan. With mortgage market slowing down by 20% during last one year, banks are desperate to attract clients and offer good amount of cash/legal contributions. Discounting on floating are also available very substantially.

Talk to us to discuss your individual situation and we will negotiate an extremely good rate for you. A good loan structure always results in good savings.

Banks more open to consider over 80% home loans

We have been regularly getting home loan approvals over 80% and banks are very much interested to lend up to at least 90%.  Up to 95% loans are also considered for highly paid professional clients with surplus monthly income of over 2000 to 3000 dollars. Five percent deposit has to be saved deposit. It may be clarified, even kiwisaver deposit that you can withdraw is also a saved deposit.

We come across a few clients who are not aware about all sources of deposit. KiwiSaver withdrawals, funds generated from surplus assets like sale of a surplus car, sale of shares in New Zealand or overseas, borrowing from family or using a non-bank lender are some of the ways first home buyers can accumulate deposit.  If you are falling short on deposit, you can use equity available in your parental home, if parents are willing to do so. Talk to us if you are interested to know details of these options.  You never   know, a few minutes of conversation, may help you in getting you into your own home.

Slowing Auckland housing market

Auckland’s largest selling RE Agency Barfoot & Thompson published its Housing Market Update for May 2014 which clearly depicts a slowing property market with the year on year sales volume being down by 14% as compared to figures of May 2013.

The trend of property sales is downward, from a peak in October last year the moving annual total of sales by Barfoot & Thompson in the Auckland market has fallen from 13,232 to 12,572 in May this year.

The reasons for decline are mainly three. First is rising Official Cash Rate and consequently higher mortgage interest rates. Secondly Loan to Value Ratio (LVR) restrictions are shutting many first home buyers out of housing market. Finally the onset of winter season always slows the housing market.  The slowdown is expected to continue till at least September.

Reduced competition and increasing willingness of banks to consider lending over 80%, is in fact providing opportunities to first home buyers with less than 20% deposit to enter into housing market. In fact we have been able to help a number of such clients in last one month. Talk to us if you are in such a situation. You may be eligible to raise home loan.

How can a non-disclosure finish your insurance cover

Insurance policies may be cancelled by an insurer when its investigations at claims time reveal things it believes the policyholder should have disclosed when applying for insurance. It's called "non-disclosure", and insurance companies look for such non-disclosures   particularly when they receive big amount claims. 

When people apply for insurance, an insurer uses the information they provide to decide whether to provide insurance, whether to add in special "exclusions" to policies, and how much it will charge in premiums. People are expected to disclose everything that a prudent insurance underwriter would want to know, and the insurer will attempt to guide a person with the questions it asks.

So one has to be careful while completing the application that all existing medical conditions are disclosed and application is completed truthfully. If you are not sure whether something need be reported or not, talk to your adviser or   mention it in the application. It is at least not going to harm you.

 

Cherry Mortgage Solutions Ltd

P O Box  27 - 070 Mt. Roskill
Auckland 1440
New Zealand

Ph  : 09 625 3800
Fax : 09 625 3801
(M) : 021 82 7575
Email: info@cherrymortgage.co.nz

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