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Interest Rate Trends



As we descend into Christmas madness take a moment to check out our last newsletter for the year – and prepare for a financially savvy start to 2015.

The latest interest rate trends

Current interest rates are higher than they were earlier in the year, but in recent months they have eased. Longer-term fixed mortgage interest rates are lower than a month ago – both high and low equity borrowers have seen falls of around 0.3% to 0.5% for 3, 4 and 5 year rates. There were smaller reductions for most shorter-term fixed rates. We believe that the likelihood of the RBNZ cutting longer-term rates is slim and it is possible that the RBNZ could be ‘on hold’ for much of 2015. For those in the market for a new home loan, there are currently some two year terms that are pretty attractive. While longer terms provide the benefit of certainty, we would need to see some brisk increases for this option to prove economic in the long run. Of course, everyone’s situation is different – so please get in touch with Prosper and let us tailor a home loan solution to suit.

Avoid post-holiday insurance claims

 With summer holidays just around the corner many of us of as are looking forward to packing up, abandoning home and heading off on holiday. Unfortunately this is the time of year that burglars love! Follow these simple steps and you’ll help minimize the risk of burglary.

  • Don't’ let your mailbox overflow. Get in touch with New Zealand Post to stop your mail, or ask a neighbour to collect it daily.
  • It’s great if you have a neighbour who can close your curtains daily. If not, leave them open (or as you would during the day). If all your curtains are closed day after day it screams that no one is home.
  • Try and control your excitement (and limit jealousy) by not posting on social media about your holiday until you are back in your own bed. Even if you’re just sharing with friends and family, others may be able to read comments and they will know you’re away.
  • Use light timers indoors and make sure your outside security lights are functioning.
  • If you’ve got an alarm, turn it on. Even if you don’t have an alarm putting the alarm surveillance stickers on your windows can be a good idea.
  • Keep all spare house keys and car keys hidden, as if you do get broken into it can prevent thieves making a return visit.
  • Unplug as much as you can (ideally everything except the fridge). This will help protect you from power surges.
  • Hide all valuables (or anything that looks valuable) from view.

How do your housing expenses compare to your income?

With stats from the latest Statistics NZ Household Economic Survey now in, it’s clear that spending on housing is increasing at a faster rate than incomes.

In the two years to June 2014 the average household income rose 9.1 per cent (from $81,227 to $88,579). During the same period the average spending on housing rose 11.1 per cent (from $256 a week to $284). On average, those with a mortgage saw their average weekly mortgage payment increase from $357 in the year ended June 2012 to $389 in 2014. Average weekly rent payments increased from $273 to $290 over the same period.

The increased housing costs are not simply born from higher mortgage and a rent payments, increased property rates, power and water costs also play a significant role.

According to Statistics NZ, an interesting finding is that we are now seeing a bigger proportion of mortgage spending going on repaying the principal rather than on covering interest payments.

If you’re keen on exploring how these averages match with your current situation, and how you can cut back on housing expenses and make the most of your income please get in touch.

Wallet pain? Are you a sufferer?

If you’re a guy, chances are you pop your wallet in your back pocket and sit on it. Yes, keeping your wallet in your pocket can be a great way to save money. But it can also cause you serious pain.

Your pelvis forms a ring like structure comprised of three moving bones. When you sit on your wallet it raises your pelvis on one side and can cause misalignment and imbalance through the spine.

This commonly presents as sciatic like pain down the legs and/or low back pain. In some cases it may not manifest as pain, but over long periods of time may cause unnecessary wear and tear – like what happens with a misaligned tire.

The solution is simple, take your wallet out of your pocket while seated. If this has been a long standing habit it’s a good idea to see a professional for an assessment. If you’re in Auckland you can try Chiropractic Touch Simply mention Prosper and you will receive $50 off *your initial consultation.

*Discount applies to new patient initial consultations (normally $100), offer is valid until 31 Dec 2014 - bookings are subject to availability.

We here to help you prosper

At Prosper we do much more than simply set you up with a great mortgage rate or insurance package. We’re in it for the long haul. We want to partner with you, regularly identifying your changing needs and tailoring your financial solutions to suit as your lifestyle changes. So please keep us in the loop with your life. Adding to your family, buying new property, reviewing existing mortgages …  whatever it is, if you let us know we can help you make the smartest financial moves. We have a wealth of expertise in all sorts of mortgage and insurance fields and fantastic relationships with a number of providers – which means, whatever your needs, we can do the hard yards and source the most suitable and most competitive solution time after time.

Thank you and Merry Christmas

Thanks you for your support throughout 2014. We look forward to sharing a prosperous 2015 with you. Merry Christmas and all the best for a wonderful summer break.

We want to make this monthly Prosperity E-update an insightful, helpful and interesting read that you’ll pass on to your friends and family. If there’s anything you’d like to see in future issues just let us know. 

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