Mortgage Adviser - MatthewDawe.com

15/06/2023

Quick question; if New Zealand was already in recession in January as this figure today says, and interest rates were JACKED +0.50% on the 22nd February, +0.50% on the 5th April and another +0.25% on the 24th May what does that tell you where economic growth is now? And where interest rates are going?

31/05/2023

Corelogic: ''Property values across Aotearoa NZ continued to fall in May, down 0.7%, but the annual rate of change has eased, providing tentative evidence the current downturn is winding up.

CoreLogic NZ Head of Research, Nick Goodall said various indicators such as moderating house price falls and the latest RBNZ forecasts for the Official Cash Rate, which is expected to have now peaked, were positive signs for home owners.

“While the OCR is at a relatively high level of 5.5% following a total increase of 525 basis points over the last 20 months, this expected ceiling for interest rates reinforces our view that a possible floor in prices is approaching,” he said.''

12/05/2023

FYI everyone: From 26 May, the banking industry in NZ will begin sending and receiving payments every day of the year. As part of this change, banks will be processing electronic payments to and from other New Zealand banks on weekends and public holidays. This includes direct debits & loan payments.

13/04/2023

13/04/2023

Preapprovals! What are they? How long do they last for? Can you renew them?

19/02/2023

Guarantors, No Deposit Home Loans! How do they work?

24/11/2022

24/11/2022

How far will interest rates rise?

19/10/2022

**Major bank escalates fixed rate specials approx +0.50% on the back of a sky high inflation number this week for NZ.

Specials 1 year 5.99%, 18 months 6.09%, 2 years 6.19%, 3 years 6.29%, 4 years 6.75%, 5 years 6.95% these are the specials. Floating & Flexi are 7.34% & 7.45% respectively.

Matt: The waves that we produced at the end of last year we all know were coming are hitting hard right now. For those that do not have an umbrella/budget are gonna get caught swimming naked. Inflation is notoriously hard to fix, like an oil tanker, a tug boat can keep pushing and pushing but it takes a lot of power to slow/stop the tanker. The tanker has not moved an inch, and there are now 3 tug boats at full throttle pushing and its still not slowing. The tugs will succeed one way or another but the engines of the economy are going to cut out as the crunch bites. 100% of the time in history inflation has caused a nasty recession and job losses, how did we think this was going to be any different? Skilled labour hasn't been able to come in pushing up wages, a barrage of legislation on rentals pushed up rents, food prices have escalated. There will be a lot more casualties until the tanker is brought into line. And its a slow process. Minimum another year of this hurricane storm which is developing, this is not even the pinnacle of the crunch, we are just entering the end game now, and if we are not, up go rates further until everyone gets the message to stop spending.

19/09/2022

ANZ forecasts the official cash rate to peak at 4.75% not 4% (currently the Official Cash Rate is 3%), a massive revision upwards which will push interest rates higher. Why? I quote from one commentator:

''What the bank has done (Reserve Bank) is 50 point rise after 50 point rise with mortgage rates 5-6% and has achieved what? What its achieved is 1.6% growth in GDP. So we have paid no attention in other words, we've kept spending, we have booked air travel, we've ordered the cars, we have gone and paid $6 for coffee and we have all done this because we have all gone to our boss or union and got a payrise and an absurd one at that. We are not making anymore or doing anymore, we've just held our hand out or threatened to walk across the road for a job that paid more. And it paid more because there is no labour because of the borders closed/labour shortage. So with our new wages we pretended we were not in trouble, but it will end, it always ends, its just a matter of how badly it ends, (Recession) they call a bad ending a hard landing. Every Reserve Bank around the world is trying to avoid it, but all are failing. 4.75% if the ANZ are right, will mean fixed rates at close to 7%, (floating at late 8's) and if you think there is another double digit wage rise next year to fix it, you are mistaken, the Government is out of money and your employer is fast running out'

05/07/2022

First Home Buyer 3x deposit tips!

29/04/2022

Aware of Rising Interest Rates? 4 Tips in 4 Minutes.