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According to today’s NZ Herald article on the Auckland Property market update, there are “reports of some auction clearance rates being lower than 35 per cent as well as fewer attendees at auctions, and sales volumes are down by about 20 per cent for October on what they were in September.”

We think we will have to see if the trend continues for 3 months in a row or not? Even this year, as per REINZ statistics, sales volumes in Auckland fell (compared to preceding month) in Jan, April, June and August; while median price fell twice before – in January and July 2015. So one month of decline may not indicate a trend for the long run.

Meanwhile in another article on home loan interest rates, NZ Herald mentioned, “Fixed home loan rates are unlikely to fall much further regardless of what happens to the official cash rate”.

Overall, interest rates have nearly halved compared to the first half of 2008 when, as per Reserve Bank data, the average 2 year fixed rate was 9.6%.

We feel that not just existing home buyers but also existing home owners should seriously consider restructuring their home loans. It could help them significantly save interest cost on top of whatever they save due to low interest rates.

For e.g. if a home loan of $500,000 is restructured to bring down the repayment term to 21 years without significantly increasing the loan installment, savings o more than $100,000 in interest cost is possible, but of course, depending on your individual and unique circumstances.

Hence, rather than thinking too much about a 0.2% drop in current interest rate, considering options for restructuring your loan may be help you save money.

To know more, call Global Financial Services on 09 255 5500 or visit www.globalfinance.co.nz