Cairns Lockie Mortgage Rate Reduction Early Movers

Cairns Lockie Early Mover in Mortgage Rate Reduction

Following yesterday's announcement by the Reserve Bank Governor, Alan Bollard of a reduction in the Official Cash Rate of 25 points to 5.25%, mortgage banker Cairns Lockie Limited today announced a reduction in floating mortgage rates.

In doing so Cairns Lockie becomes one of the first main stream mortgage lenders to pass this reduction in wholesale rates onto its borrowers.

The company's variable rate falls to a new low of 7.00%. This is one of the lowest rates, for a fully featured variable rate loan, in the market.

"In our Mortgage Commentary last week, we noted the unusual situation of the 90-day bill rate at 5.35% being below the Official Cash Rate of 5.50%", Mr Lockie said, "indicating that the market expected a lowering in rates. Yesterday the bill rate bounced around before settling at 5.20, confirming a lowering was expected. This prediction has been borne out".

Fixed rates have also been reduced to the following levels:
1 year 6.00%
2 year 6.31%
3 year 6.54%
5 year 6.71%

The bill rate firmed to 5.25 following the announcement to match exactly the revised OCR.

Cairns Lockie Limited is a mortgage banking company specialising in residential and residential investment lending. It has a strong internet presence through its site http://www.emortgage.co.nz

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