Welcome to the second Cairns Lockie MortgageCommentary for 2006. This is a fortnightly electronicnewsletter, which aims to keep you informed on developmentsat Cairns Lockie, Mortgage Bankers and the mortgage marketin general. Previous issues of this commentary can be foundon our websitehttp://www.emortgage.co.nz/newsletters.htm

The MoneyMarket

This morning (8am on 24 February 2006) the moneymarkets were at the following levels:

Official cash rate 7.25% (unchanged) 90 day bill rate 7.50 (down from7.62) 1 year swap rate 7.33 (down from 7.37) 3 yearswap rate 6.80 (unchanged) 10 year bond rate 5.65 (downfrom 5.69) Kiwi dollar 0.6587 (down from 0.6763)

WhyHouse Prices Keep Going Up?

Are property investors andspeculators really to blame? We think there are many otherfactors pushing up house prices. There has been an increasein building input costs such as timber, concrete, steelreinforcing, and various bathroom and kitchen items.Tradesman have increased their hourly rate, pushing uplabour costs. Government also has an impact, altering forexample the overtime regulations and pushing up the cost oflabour. Council costs have been increasing for such thingsas resource consents together with higher compliance costssuch as building tests in the wake of the leaking buildingsyndrome. All the above increase the cost of building ahome, and as new dwelling costs increase, the price of theexisting housing stock quickly follows suit.

Lending onSale and Purchase Agreements

Is an independent valuer'sreport required with all mortgage applications? The answeris NO. Over the past few months various councils havereleased their own valuations which are acceptable to us ina number of circumstances. If you are purchasing a propertythrough a real estate company we can, in many cases, forgothe requirement for a valuation. If a valuation is notrequired it will save you both money and time. If you arepurchasing a property, then just ask one of our lenderswhether or not a valuation is required.

Our NewCoins

On 31 July this year the Reserve Bank will issuethree new coins - in 50, 20 and 10 cent denominations. Thesecoins will be smaller and lighter than the existing ones andthe new 10 cent coin will be copper coloured. The 5 centcoin will be consigned to the history books. It will go. Allthe older coins will be phased out over a three month periodand will cease to be legal tender. The $1 and $2 coins willremain unchanged. We are surprised that the Reserve Bank isnot introducing a $5 or even a $10 coin. The 50 cent coin,new in 1967 when decimal currency was introduced, in today'smonetary value would be worth around $9. There is room forat least a new $5 coin which will be preferable to receivingthe often very worn and faded $5 note.

WellingtonProperty market

The Wellington property market continuesto perform well. Part of the reason for this is thecontinued expansion of the government sector and the readyavailability of low equity mortgages for those with secureemployment (such as government sector employees). There havebeen some interesting sales in the region. A well presentedup market beachfront home with good views in Moana Road inPlimmerton, north of Wellington, recently sold for $1.65million. A large five bedroom house located in Queen Street,Petone recently sold for $720,000, a record for this area.On a lighter note a boat shed without any livingaccommodation, built in the 1950's located at Karaka Bay onWellington's Miramar peninsula recently sold for$133,000.

Our current mortgage interest rates are asfollows:

Variable rate 9.20%

No Financials HomeLoan 9.80

Jumbo Loan 9.20

Quick Start HomeLoan 8.15

One-year fixed rate 8.58 Two-year fixedrate 8.14 Three-year fixed rate 7.99 Five-yearfixed rate 7.99

Line of credit facility 9.30

ENDS
THIS ISSUE Lead NZ News NZ Politics World News FeaturesNew Zealand News RECOMMENDED AUDIO: Scoop Audio: Selwyn Manning & Simon Pound discuss Labour's list MP Marian Street, and Winston Peters' 'soft criticism' of the U.S.

NEW ZEALAND LEAD: Employment: Air NZ Takes Scythe To Workers - The Engineering, Printing and Manufacturing Unionis challenging Air New Zealand's latest round of jobs cuts, saying that it is time the airline worked with its employees for the sake of everyone. National secretary Andrew Little said that it was unbelievable that the company had today announced another 470 jobs would go, hard on the heels of the drama over contracting out engineering. See... Air NZ - don t get it wrong again EARLIER:Green Party - "Pull out of job cut tailspin" Greens tell Air NZEPMU - 'Yes vote great newsScoop Report - Parties Positions On Sacking Of Air NZ WorkersAMEA - Christchurch engineers vote yes

Health: Hodgson Announces Investigation Into Focus 2000 - The government will carry out an organisational review of Focus 2000 in addition to a financial audit and quality audits of the organisation's disability support facilities, Health Minister Pete Hodgson announced. The Minister's comments follow this afternoon's meeting between the Ministry of Health and the board of Focus 2000. See... Hodgson announces review of Focus 2000 ALSO:Focus 2000 - Statement - Walt Beanland, Chairman of FOCUS 2000 MOH Clarification Regarding Focus 2000

Health: NZ's Bird-Flu Planning To Be Used As WHO Model - New Zealand's work to plan for a possible flu pandemic will be used by the World Health Organisation (WHO) as a model to guide the planning efforts of other countries, Health Minister Pete Hodgson announced today. The WHO will use the Ministry of Health's public awareness campaign material -- including brochures and broadcast advertising -- to help other governments develop similar campaigns. See... WHO seeks New Zealand help for pandemic planning

MORE HEADLINES:Restaurant Brands National Call Center to StrikeReport Highlights Petrol Tax FollyCuisine Salutes the Country s Finest RestaurantsDistrict Health Boards Report Operating DeficitGerman electro-punk puppeteer hits Wellington

Employment Law: CTU Applauds Minimum Wage Bill Passing First Reading - "The Council of Trade Unions is eager to make the case to MPs for the removal of youth rates, and inject some sense and evidence into this debate," said Ross Wilson, Council of Trade Unions President. Parliament tonight decided to send Sue Bradford's Minimum Wage (Abolition of Age Discrimination) Amendment Bill to select committee. "Various business lobby groups have used the publicity generated by Sue Bradford s bill to paint a picture of dreary employment prospects for young workers should the bill pass," said Ross Wilson. See... Youth wages bill goes to select committee ALSO:Maori Party - Minimum wage: Tariana TuriaYoung Workers Strike as Youth Rates Bill DebatedSecond Store to Strike Against Youth RatesPorirua KFC workers to Strike!Restaurant Brands National Call Center to Strike

SCOOP REPORTS: Opinion: Peters Ought To Be Encouraged For 'Soft Criticism' Of U.S - State Of It editorial Selwyn Manning writes that Criticisms by Winston Peters, of the USA's level of understanding of NZ's role in the Pacific is fully justified and indicates a shift in thinking - from that of an opposition MP to ministerial responsibility. It ought to be encouraged. But has Peters gone far enough? In time, one can imagine this foreign minister, armed with a box of facts, determining a view and aggrieve that recent history has relegated New Zealand's national identity, and indeed its international identity, down to that of third-way insignificance. See... Soft-Criticism Of Unappreciative U.S. Fair Comment ALSO:Omar Hamed - Selling out our neighbours and serving the empire

MORE Scoop Reports: Selwyn Manning - PM's Office Announced Abizaid's Visit Too EarlySelwyn Manning - Benson-Pope Says Nothing New In Wishart ArticleLyndon Hood - Arts Fest Preview: Les Arts Sauts' Sara SandqvistScoop Team - A Week Of It: Donations, Redundancies, BraveheartsKevin List - Good Day At the Cricket - Bad Day On The Couch ALSO:FULL COVERAGE: Festival 2006

SCOOP VIDEO & AUDIO: While you are here, take a look at Scoop's new advertisement! Don't Swallow Just Anything!

RECOMMENDED AUDIO: Scoop Audio: Kevin List on Active Radio discussed: Who is to blame for engineer job losses at Air New Zealand -- And the Unsworth 800 Buck Black Book Scoop Audio: Selwyn Manning discussed on Radio Adelaide today: Winston Peters' MFAT 5-year-plan; South Park's "Offensive" Bloody Mary episode; how 22,500 Kiwis left for Australia last year; and a Youth Rates bill designed to abolish discrimination against youth in the workplace is to be read in Parliament today. Scoop Audio: Press Club Lap Up Greens Scoop Audio: PM's Presser - Answers Historical Questions On Benson-Pope Allegations, ALSO: U.S. 'Arab-Friendly' General Coming To NZ!!! Scoop Audio: On RadioLive Tony Amos, Selwyn Manning, &, Ben Thomas discuss: the PM's fund Labour campaign card fiasco; Don Brash and leader-in-waiting John Key; Nat-Attack on Winston Peters, eminent kiwis & TVNZ; and the rise and rise of the Unite Union movement. Scoop Audio: Selwyn Manning & Simon Pound discuss on 95bFM how the UN has urged the USA to get out of Guantanamo Bay. Scoop Audio: Selwyn Manning discussed on Radio Adelaide: Prime Minister warns Telecom to improve its broadband deals - National Party leader Don Brash tells PM to pay tax payers back for campaign card spend - Prominent Kiwis pressure government to reform TVNZ - Fairfax editors eat humble pie after Media/Muslim community meeting.

RECOMMENDED VIDEO: Video: Youth Workers Mobilised On Wage Campaign Trail - Political Movement 2006-Style: Over 1000 fast food workers, mobilised by Unite Union, supported by the CTU and affiliated unions, the Maori Party, Green Party - a burgeoning youth political movement is demanding that the minimum wage be increased to $12 per hour. The SuperSizeMyPay.Com campaign began concentrating on fast food retailers and is poised to expand out into all low wage sectors. Scoop Video: Unite Mobilises Youth In Minimum Wage Push

Click here for Scoop's Audio and Video pageJOBS: The best are @ SEEKTarget 110 000 ConsumersNZ REAL ESTATE OnlineTRAVEL: Packages & Deals!Book Cheap FLIGHTS OnlineRETIREMENT CalculatorMORTGAGE Calculators #this_text { text-align: left; vertical-align: middle;}#this_text a { font-family: "Verdana", sans-serif; font-size: 80%; color: #943517; text-decoration: underline;}#this_text a:hover { font-family: "Verdana", sans-serif; font-size: 80%; color: blue; text-decoration: underline;}The best JOBS are @ SEEK THE WIRES Scoops Parliament Politics World Business Sci-Tech Culture Education Regional Health SEARCH _m1svt='');

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