Owning a home expected to get easier

The number of people owning their own homes is expected to rise as interest rates fall and borrowers enjoy savings of about $7000 a year on mortgages.

Auckland loan specialists Cairns Lockie have calculated that people paying about $32,000 a year at last year's high interest rates of 10 per cent could be soon paying $25,000 if rates fall to 7 per cent.

House prices have also fallen over the past six months, the business says, and 10 per cent to 15 per cent discounts are not unusual.

The drop in prices coincided with mortgage rates falling and there is a prospect of further cuts, all helping house buyers.

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By NZ Herald, 28 October 2008

Posted: 28 Oct 2008

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