As the economy continues to improve there are still some concerns on the horizon that are influencing interest rates. As we look at the year ahead the debate on what interest rates will do, and the best interest rate strategy to follow, has gained momentum. This is never easy to pick and there are many people that like to think they know, but the reality is “many factors contribute to the changes”.

When it comes to interest rates the option of staying on a floating rate or taking a more expensive fixed rate is one of the most common questions right now. Answer: If your budget is tight and you are the type of person that likes to know exactly how much you want to pay each fortnight, then a fixed option is a good way to go.

Yet if your budget has some discretionary money available, sit floating on the lowest rate currently available, allows some interest saving and lump sum payments with no penalties. If floating rates do start to rise, you can switch to a fixed rate at any time. Just remember those fixed rates may be higher, than the fixed rates available today.

For more discussion about what will suit your individual situation, please arrange a time to meet with one of our team from Taupo Home Loans.

Due to the world credit crunch the hang over continues, with all lenders having reviewed their credit criteria and limiting their risk profile for what seems to be the foreseeable future. Conservative credit policy is the order for New Zealand’s big banks with many still very reluctant to lend over 80% of a residential family home. Availability of funding and the borrowers risk profile are closely considered by lenders who are now needing to carefully assess, monitor and control their volume of lending. So remember just because you were given that level of lending 2 years ago, it may not be possible now. Check this out before you commit to any new proposal.

The number of lenders in New Zealand has decreased considerably, leaving the major banks, some insurance companies and a few niche players in the market. Because of this dramatic reduction in options borrowers need to consider their current lender versus the other providers that have survived. Careful consideration is needed to ensure a new lender will provide the services and facilities that you need, and this should never be solely based on price.

To talk through your options with one of the team at Taupo Home Loans then please call 0800 800 303.

Why do we need it? At some stage in our lives serious illness can occur to us or someone in our family. Perhaps you can think of someone you know who has had a heart attack, a stroke or been diagnosed with cancer – it does happen!

A critical illness can be severely damaging emotionally and financially, and recovery could take months.

Trauma Insurance is a tax free lump sum benefit paid out to you on the diagnosis of a critical illness or Trauma event.

This benefit will remove the financial worry that comes with serious illness allowing your family to focus on the recovery of you or your loved one giving you the means to meet your financial obligations such as mortgage payments, additional medical expenses and replacing income flow.

If you would like more information about Trauma Insurance please call 0800 800 306 and one of our advisors from Taupo Home Loans will contact you to organise a convenient time to meet with you.

For more information about our service, or to view our disclosure documents then please visit ... www.home-loans.co.nz

If your family or friends also want to receive a copy of our newsletter each month then please forward them this newsletter and they can go to.. www.home-loans.co.nz/newsletter/subscribe

The team at Taupo Home Loans look forward to assisting your referrals in 2010!

Rather than have your happiness dependent on the achievement of a future goal, make happiness your goal right now.

Written by Kate Marr-Kippenberger - writer of the daily column, Soul Food, for The Press. Soul Food has been published in book form internationally and was a best seller in NZ. Please go to www.onlinesoulfood.com for more information.