On Thursday 10th September, Reserve Bank of New Zealand is set to announce updates on the Official Cash Rate.
In a recent survey by Mortgagerates.co.nz all economists expected a cut in (Official Cash Rate) OCR of 25 basis points. If RBNZ announces such a cut, it will take the OCR down to 2.75%. If it happens, the rate of interest for floating home loans could reduce in New Zealand. Previously Westpac Bank chief economist Dominick Stephens also predicted a forecast of as low as 2% for OCR.
This comes in the backdrop of heightened activity in the Auckland property and mortgage markets.
Ajay Kumar, Director of New Zealand’s leading mortgage broker and adviser, Global Financial Services Ltd (GFS), has been advising clients to keep an eye on the falling interest rates. Interest rates on home loans have come down from a high of around 6% last year (for 2 years fixed) to recent lows of around 4.55% (for 2 year fixed interest rate specials) and 4.35% (for 1 year fixed interest rate special).
However, many people who have a mortgage have been worried about the unexpected break cost when they ask banks to reduce their fixed interest rates to the new lower rates. For this Global Financial Services based in Auckland has been working closely with customers as well as bankers across New Zealand to do a cost benefit analysis of how much they gain from the new lower interest rate on their fixed home loan versus how much they loose on break costs. GFS has also negotiated good cash backs with the banks for covering a significant part of the break cost – where it makes sense to do so.
In an economic environment where interest rates have been falling, though most home owners with mortgages stand to benefit, those with their ears to the ground and some patience would probably be able to maximize their benefit. It is very important to be able to compare deals across banks as different banks have come up with different offers and initiatives to tap this buzz. What customers need at this hour is not just a mortgage broker but rather a mortgage adviser who can do all this analysis and follow predictions on their behalf – instead of the customer doing it all.
This is where GFS comes in. Ajay Kumar started GFS with the vision that he will help customers not just get a mortgage but also advise them on how to pay it faster by saving unnecessary interest. Similarly, GFS would help customers to get the right insurance which would protect the family home and other assets in unforeseen events – while saving on their insurance premiums as well. GFS customers have become mortgage free in as little as 7 to 12 years compared to the standard 30 year term that banks provide to mortgage customers.
Global Financial Services Ltd has been successfully serving the New Zealand market continuously for over 16 years. It has been successful in arranging loans and life and personal risk insurance of about $5.5 billion.
GFS has won 23 prestigious awards & recognition including top advisor awards from ANZ Bank, ASB Bank and AIA Insurance and The New Zealand Mortgage Mag. Others include Indian Business Awards for Excellence in Customer Service, Best Medium Sized Business and Supreme Business. GFS was a Finalist for Excellence in Customer Service Delivery at Westpac Auckland Business Awards 2015 - delivered by Auckland Chambers of Commerce and ATEED and are across industries.
For assessing your loan situation and how you can benefit, please contact GFS on 092555500 or email@example.com.