Mike Pero listed below issue price-now a 32% loss

[biker]

The following is part of the announcement to the stock exchange on Friday.The full announcement escapes me but it was full of hype that indicated MPM would go like a rocket today.It is time NZX annoncements contained facts not bull shi t.MPM was issued at $1. Quotes buy 92c sell 96c.
As an aside,for all sorts of reasons,why invest in an IPO???




Organising broker, Greenslades, said demand for the shares had outstripped supply.

"Demand has been so intense we could have easily placed considerably more than the 10 million shares actually allocated," Greenslades managing director Roy Borgman said.

Mike Pero Mortgages chief executive Jeff Staniland said that with the IPO now successfully completed the company was in a position to consider further growth opportunities.



Yea Right!

--------------------------------------------------------------------------------

[Noddy]

When was the last time you saw an organising broker say that the IPO was a flop?

Will be interesting to see Feltex issue on open.

[zyreon]

I'm gunna take a bet on feltex listing at a premium (funds permiting)

*fingers crossed*

but yeah thats true, never heard an underwriter say there wasn' heaps of demand.
though I doubt you could tort them for misrepresentation or sec9 misleading and deceptive conduct

[belgarion]

quote:Originally posted by zyreon


though I doubt you could tort them for misrepresentation or sec9 misleading and deceptive conduct


Why not? If they are lying and it can be proven, then their motivation for lying is clear. The crunch is simply proving that they intended to profit from known lies.

Competition guess which week the share price reaches 50cents my guess 1st week in December

[Speculator]

Must prove:

1. You made loss.
2. You relied on broker's statement.
3. You must convince court of the above which would be difficult.
4. Does a broker have a duty of care for representations or does the investment statement and prospectus waive any liability?
5. Small claims tribunal recommended. Little success with Wakefield con job in SCT. Adjudicator luck of draw.

[rawdata]

quote:Originally posted by biker

The following is part of the announcement to the stock exchange on Friday.The full announcement escapes me but it was full of hype that indicated MPM would go like a rocket today.It is time NZX annoncements contained facts not bull shi t.MPM was issued at $1. Quotes buy 92c sell 96c.
As an aside,for all sorts of reasons,why invest in an IPO???

Organising broker, Greenslades, said demand for the shares had outstripped supply.

"Demand has been so intense we could have easily placed considerably more than the 10 million shares actually allocated," Greenslades managing director Roy Borgman said.

Mike Pero Mortgages chief executive Jeff Staniland said that with the IPO now successfully completed the company was in a position to consider further growth opportunities.



Yea Right!

--------------------------------------------------------------------------------




The above was robably a statement of fact - that demand exceeded supply. The fact that punters do not follow through and buy on the market on listing at a lower price tells you more about the punters than it does the organising broker.

Also the statement was made after the allocations have been made - not before.

Dis. No interest whatsoever in Mike Pero but fair's fair.

[PrinceofWhales]

Organising broker, Greenslades, said demand for the shares had outstripped supply.

If the above statement was true then some applications would have been scaled down?

No appliclations were scaled down so Greenslades statement was obviously untruthful.

[willy_wonker]

This DOG is going lower, so dont hold your breath.

The fact that Greenslade is doing the float says alot. Have you not heard about interest rate going up and property market slowing? Come and make the promoters rich, laughing all the way to their bank account.

Wait till the NZ apartment market crashes.

WW the sooner the better what is your estimation of the week the share price will hit 50cents see above posts

[rawdata]

quote:Originally posted by PrinceofWhales

Organising broker, Greenslades, said demand for the shares had outstripped supply.

If the above statement was true then some applications would have been scaled down?

No appliclations were scaled down so Greenslades statement was obviously untruthful.




The demand was obviously there as MPM was able to sell 10m shares rather than 7m - 3m being oversubscription.

You can be sure that some of the South Island investors would have fallen over themselves to share in the Gould magic - shades of the adoration enjoyed by the likes of Allan Hawkins, Eric Watson and Colin Reynolds at their peak pulling power.

So point the finger in the direction of the punters - they wanted and now they have the shares. What's wrong with that?

[cdt18]

Gould did the dirty on the public, same old game different crowd. Just like Bain with Vertex etc etc etc.

[rawdata]

quote:Originally posted by cdt18


Gould did the dirty on the public, same old game different crowd. Just like Bain with Vertex etc etc etc.


There were several articles in the papers alerting to what Gould was up to - just like there was on Vertex. The public chose to invest - nobody forced them to put their money in.

[Gryffyn]

He only has 7% of the capital - minor shareholder these days after selling to Gould.

[willy_wonker]

quote:Originally posted by ENIGMA

WW the sooner the better what is your estimation of the week the share price will hit 50cents see above posts


I have no idea where the share price will be, but you can be sure that the property market will lag with a downhill bias for at least a year or two.

The question is where will the growth come from? Certainly NOT offshore.

[whatsup]

What is/was Goulds entry price into this semi-share? after his underrighting exercise?

[Andrew]

Once interest rates increase in the US, our money supply will tighten.

BNZ already doesn't use mortgage brokers, on the tightening up of the money supply in NZ other banks will follow suite. Where will this leave mortgage brokers - working for those who cant get funds or those who don't know how - small market.

Do they even own the buildings they operate from. Anyone know the NYA.

[willy_wonker]

A good point Andrew. A good example is the airline industry with AIRNZ cutting out the brokers and diretly selling tickets through their website.

The question is, will the other banks follow BNZ. I am sure they will if BNZ is successful. One of the problems I have found dealing with BNZ is that they are not flexible in their decision making, thus losing alot of business.

[biker]

This following is some more of Friday's announcement.I guess when you are working for the vendor an initial 6% loss to the buyers is a positive listing in broker-speak.I'm not interested in investing in MPM but it never ceases to amaze me how brokers large and small continue to act like real estate agents and used car salesmen.And the investing public continue to get sucked in.



Organising broker, Greenslades, confirmed that interest in the share offer
has been strong.

"Mike Pero Mortgages has been a very attractive offer, and demand for the
shares significantly outweighed supply," Greenslades Managing Director, Roy
Borgman, said.

"Demand has been so intense we could have easily placed considerably more
than the ten million shares actually allocated," Mr Borgman said.

Mr Borgman said he expected continued strong demand for the stock.

"Based on the overwhelming public demand for Mike Pero Mortgages shares and
the steady accumulation of buy orders over the last few weeks, I would expect
a positive listing," Mr Borgman said.


Four wheels move the body;two wheels move the soul

[cruisader]

I agree Biker. This guy should be selling cars or Mortgages!
Have Greenslades ever done another float?

[Steve]

According to todays ODT "The MPM issue was the first time 108-year-old Greenslades had been the organising broker for a listing on the main board of the stock exchange"

[cruisader]

quote:Originally posted by Steve

According to todays ODT "The MPM issue was the first time 108-year-old Greenslades had been the organising broker for a listing on the main board of the stock exchange"



Well I think it could be the last one for 108 years. No wonder they got carried away with how successful it was, they dont know any better!

[Steve]

I notice the recent profit upgrade appears to have only a temporary blip upwards on the share price. Have any of the previous opinions changed on this stock? [Disc. Looking to buy some @ 80c.]

[Steve]

well, it finally got down to 80c!!! Now, I guess I will sit back and see where this takes me...

[floyd]

ive been following the s/p as well, wonder a good price to enter maybe....dwn 20 percent on issue.

[moimoi]

chart looks sick.

maybe now that george is out of VTX he might have time to look into this[:p][:p]

[Bling_Bling]

Wow, the IPO investors must be PISSED OFF.

[Longtack]

Trendline break.

[Steve]

I sold out yesterday @ 84c due to there being nothing "inspirational" from the AGM.

Now watch the price go up...

[mikescott]

What was there to be inspirational about? Pero has made his money and is enjoying life, motor-racing and flying planes, and Gould has already made his money by getting 50% plus of the company for nothing.

Suckers.

[Gryffyn]

Agree with Minder. Now minder, why don't your turn your attention to momentum mags

[hirzelz]

Another 10c or 12% drop in S/P since the previous posts on the 5th Nov. Is there any future for this stock?

[Runswifscissors]

With any luck it will drop down to near what it should have listed at.

[lambton]

quote:Originally posted by hirzelz

Another 10c or 12% drop in S/P since the previous posts on the 5th Nov. Is there any future for this stock?


Nup.

[mikescott]

First BNZ stopped all dealings with mortgage brokers. Then ANZ cut commissions. Yesterday, CBA/ASB did the same.

A business with declining sales and declining margins - that's Mike Perooooo Mortgages. As Mike Pero and George Gould put it - you now pay, not the banks, suckers. :D

[moimoi]

uninformed nonsense!!!

BNZ won't deal with brokers on residential deals.

Not revealed in their misleading advertising is that they readily accept deals from brokers on commercial property.

ANZ/CBA trimming commissions in Aussie...not as yet here.

Despite this the chart on MPM is still looking sick.

I suspect the only future for the share price is for them to aquire other brokers and/or insurance writers.

;)moi

[Bling_Bling]

quote:Originally posted by moimoi

uninformed nonsense!!!

I suspect the only future for the share price is for them to aquire other brokers and/or insurance writers.

;)moi



A rights issue will totally finish this stock and send them heading for 10 cents.

[Scooter]

Banks are pulling out of paying commissions to brokers. Mike Pero knew that this might happen as BNZ stopped paying last year, and when one jumps, the others follow suit.

[mikescott]

quote:Originally posted by moimoi

uninformed nonsense!!!

BNZ won't deal with brokers on residential deals.

Not revealed in their misleading advertising is that they readily accept deals from brokers on commercial property.

ANZ/CBA trimming commissions in Aussie...not as yet here.

Despite this the chart on MPM is still looking sick.

I suspect the only future for the share price is for them to aquire other brokers and/or insurance writers.

;)moi


:D:D:DStarts from March next year.:D:D:D

[Halebop]

Insurance companies would love to wean themselves from the middle man too but haven't figured out how to do it at the big end of town. Althugh frankly they haven't realised how crap they are at talking to their customers.

Not sure how this would affect mortgage brokers but it would have to benefit non bank lenders. Bank of Queensland are too small to matter. Having another of the big four break away would be more interesting but I think this would just mean more growth for GE Capital and the likes.

Cantab: You almost make banks sound virtuous... almost. [}:)]

[kura]

In my young days, if you wanted a loan you went to a bank directly, and did any "shopping arround" yourself

When did mortgage brokers ever become part of the financial scene ? 10 years ?

[Bling_Bling]

Most mortgage and insurance brokers are bias towards the institutions that pays them the most fees. The brokers dont work in the best interest of the customers, but that of their own pockets. [xx(]

[nelehdine]

Dn 28% now ... eeks. I used to sit next to the CEO when he worked for TokyoMitsubishi in London ( about 8 yrs ago ). I feel for him, trying to steer a sinking ship out of the mire ain't easy !!!

[moimoi]

and as we all know Bling Bling, your bank will always work with your best interests in mind.....

[tribeca]

Unhappy shareholders must be wondering what actions the board are planning to take given the goose laying the golden eggs is contemplating keeping the eggs for herself. Not hearing a lot of good news from the company since listing...

One of the reasons that I passed on the IPO was that fact that most of the agreements with financial institutions can be terminated without cause, and most contracts have a 30 day notice period... a whole lot of risk and not a lot of value in contracts of this type. Even the best branding and marketing cant hide this fact.

[Bling_Bling]

quote:Originally posted by moimoi

and as we all know Bling Bling, your bank will always work with your best interests in mind.....


The best is to shop around yourself and get the best rate. I have had bad experiences in the past with insurance brokers. I hope the insurance firm will do the same and kick out the insurance brokers, especially for commmercial buildings.

[mikescott]

quote:Originally posted by tribeca

Unhappy shareholders must be wondering what actions the board are planning to take given the goose laying the golden eggs is contemplating keeping the eggs for herself. Not hearing a lot of good news from the company since listing...



Forget about the good news after listing - there wasn't any prior to the listing except blind South Island faith in one George Gould, the magician. There were a number of articles alerting to the eye-gouging that was happening but fear not, the midas Gould will deliver thee golden rewards.:D

Those of you in MPM - your goose has already been cooked and is already half-eaten by Pero & Gould. Thanks for coming. [xx(]

Pero looks for rich pickings
30.04.2004
COMMENT
On March 5, Mike Pero sold his mortgage broking and associated businesses for $15 million.
Now he and purchaser George Gould are trying to convince investors that the company, Mike Pero Mortgages, is worth between $22 million and $25 million.
That's depending on whether the current float raises only the $7 million target or whether it gets to the full over-subscription level of $10 million.
As far as I can see, nothing much about the underlying business has changed in the meantime.
Even by the standards of other recent floats, these are incredibly rich pickings within an even shorter period than most.
Take Vertex, where the venture capitalist vendors paid about $12.8 million for the stake they sold for $60 million in less than two years (Gould later bought a 19 per cent stake in Vertex and is now its chairman but had nothing to do with the float).
Or Freightways, where the venture capitalist vendor paid A$187 million for the company's Australian parent and a year later sold the New Zealand subsidiary, keeping a 20 per cent stake, to recoup most of its initial outlay.
The Mike Pero prospectus says the float proceeds will be used to pay the estimated $483,000 expenses of the offer (that's 6.26 per cent of the funds raised if $7 million and 4.4 per cent if $10 million), reducing debt and "to position the company for future growth by complementary acquisition. No particular acquisition is contemplated at the present time".
A glance at the March 5 balance sheet is enough to tell anyone that there won't be much, if any, money left for acquisitions.
Gould's purchase was entirely debt-funded, guaranteed by his investment company Gould Holdings, and the only equity left in Mike Pero Mortgages is the $1.5 million Pero paid to buy back a 10 per cent stake in the company; Gould currently owns 90 per cent.
That's supporting $16.8 million in total assets. In other words, current equity is just under 9 per cent of total assets, a very thin sliver indeed. If the float raises $7 million, that would bring equity up to 50.7 per cent of total assets and if it raises $10 million, equity would be just under 60 per cent.
But what are investors actually buying? Undoubtedly, the company's biggest single asset is its brand. Accountancy firm KPMG has valued that at $13.2 million. On top of that is the fee and other income already in the pipeline; the amount due in the next 12 months plus the cash is valued at just over $3 million in the balance sheet while future trailer commissions are valued at $71,526.
According to the prospectus, 60 per cent of the company's revenue in the year ending June will come from brokerage and a further 26 per cent from trailer commissions.
Every time the company or one of its franchisees signs a client up to a mortgage, they receive a percentage of that loan, usually between 0.5 per cent and 0.8 per cent of the loan amount as an upfront commission from the lender.
A number of lenders also pay continuing "trailer" commissions over the life of the loan, or for a set perio

[Onthemoney]

Great timing by Pero and Co....

[Sky Tower]

Whilst I got much ribbing from my friends for investing in this IPO @ 1.00 (they kept telling me I should have known better), my sell at 0.95c is looking increasingly good

[Morch]

Greenslades sucked their clients into this one and after the float their picture was in the papers toasting one another on the success and oversubscription.They would have put a real spin on the offer without much concern as to potential downside to massage their ego.

Gould, Pero and Greenslades did very well out of it while the investors where shafted.

Yes I do know of people that they tried to get into it by including it into a new portfolio, real cunning stuff.

Morch :)

[Shamrock]

dnicholls,

Well done. It is a wise man who can admit to a mistake and so not let it cost him too much.

[Longtack]

I'm pretty sure that "Pero" or "Perro" is Spanish for "Dog" - seriously.

[rawdata]

Pero and Gould did nothing wrong - they put together a well-timed float and punters fell over themselves to buy in. So much so that there were oversubscriptions taken of 43% - yes, $3m more allocated to the eager punters than the $7m sought.

Pero and Gould did not twist anybody's arms to buy in , did they?

[Bling_Bling]

Where is the growth for MPM?

Brokers brace for cuts in mortgage fees

23.12.04
By GARETH VAUGHAN

The mortgage broking industry is bracing itself for cuts to the commissions banks pay for bringing them home loan customers.

In Australia, ANZ and Commonwealth Bank of Australia (CBA), ASB's parent, cut brokers' commissions during the past week. New Zealand's biggest bank, ANZ National Bank, signalled earlier this month it is likely to do the same.

Chief operating officer Steven Fyfe said yesterday banks' margins on home loans had fallen by a third in the past five years but there had been no correlating fall in brokers' commissions.

Meanwhile, Westpac recently started paying brokers less upfront but offering more for tying customers into Westpac loans for longer periods of time. ASB is watching developments.

Banks get about a third of their residential mortgage business through brokers.

Jeff Staniland, chief executive of listed mortgage broker Mike Pero, said yesterday he was in ongoing dialogue with the banks.

However, Staniland said if Kiwi banks mimicked the cuts made in Australia, it would probably not have a "material" effect on Mike Pero.

"My opinion is that commissions are higher in Australia than they are here generally," Staniland said.

He estimated upfront fees averaged 0.8 per cent of total loan values in Australia with trail payments, the amount paid to brokers for each year a loan stays on the bank's books, at 0.3 per cent.

Here, they average 0.6 per cent and 0.25 per cent respectively.

"There may be bigger margins there to attack than there are here," Staniland said.

CBA cut its upfront payments from between 0.6 per cent and 0.7 per cent to 0.55 per cent. ANZ cut its trail commissions, which vary from 0.2 per cent to 0.3 per cent, by 0.05 per cent.

Staniland said mortgage broking was a "growth industry that's starting to mature".

Shares in Mike Pero have fallen 29 per cent since the company's May 24 initial public offering. Issued at $1, they closed at 94c on May 24. After reaching a high of 97c in June, they were worth 70c yesterday.

Staniland said fears of a slowdown in the property market had impacted on Mike Pero's share price.

"All we can do really is deliver on earnings and show that it's a good business model," he said.

[Sky Tower]

MPM is now 0.68. This stock appears to be in freefall.
With trading banks having reviewed or thinking about reviewing broker commissions on mortgages this appears to be a stock that will remain out of favour.

Will it find support? somewhere? anywhere?

[Rogue1]

Trading banks have been talking about reviewing commissions for brokers over the last few years and to date there has been little or no change, in fact we now see banks providing specials deals and rates into the market which are only available through brokers.

Yes there have been changes in Australia, and yes there is likelihood it will flow through to NZ, however that will result in the small players leaving the industry and the larger franchise organisation growing bigger ;)

[Sharebroker]

quote:Originally posted by Rogue1

Trading banks have been talking about reviewing commissions for brokers over the last few years and to date there has been little or no change, in fact we now see banks providing specials deals and rates into the market which are only available through brokers.

Yes there have been changes in Australia, and yes there is likelihood it will flow through to NZ, however that will result in the small players leaving the industry and the larger franchise organisation growing bigger ;)


Unrealistic hope from a desparate shareholder?

Lower mortgage volumes plus lower margins = bad for business. That's the mortgage broking industry.

[Rogue1]

No SB I hold no shares, looked at it in the IPO, but decided against it, and tended to agree with some of the earlier posts on this forum at the time of the float.

My comment was more on the industry, of which there have been lots of personal opinions expressed ........

The best is to shop around yourself and get the best rate. I have had bad experiences in the past with insurance brokers. I hope the insurance firm will do the same and kick out the insurance brokers, especially for commmercial buildings.


--------------------------------------------------------------------------------
~This stock shines so bright that it "Bling Blings"~


... Without any real knowledge of the industry.

I am a broker and have a vested interest in whats happening, my comment was that most of the banks have at one time or another looked at commission rates (both upfront and on-going), and are continually reviewing ways in that they can still keep new business coming through the door, while reducing churn.

Will the broker go away??? ..... National Bank quoted 40% of their high value loans are broker initiated at the 2003 NZMBA conference. Of the big 4 banks, broker initiated deals make up 25 - 30% of their portfolio, so I can't see it happening anytime soon.

Is MPM a good investment? at the current share price for a long term hold it may well be. Property cycles are every 7 years and we are currently in a downtrend. Will the property market rise?? Pretty much gauranteed!

Will Mike Pero see the benefit of a rise in the property market? As one of the larger broking firms you'd have to think the would

[Placebo]

quote:we now see banks providing specials deals and rates into the market which are only available through brokers.

Rogue did you get this right? special rates are only available through banks, i.e. if you DON'T go thru a broker. That's my understanding...

[Shamrock]

You may both be right. My experience of the broking industry (as a client of one) is that Rogue1 is correct.

There is however anecdotal evidence of a shift in some banks' attitude to brokers and their better deals may well be going on non broker-initiated loans

The policy probably varies from bank to bank - I don't know

[Rogue1]

Placebo - Yes a number of lenders provide special rates which are not advertised but are available to their own mortgage managers and brokers.

Shamrock - Each of the major banks have a very strict policy with regards to rate discounting and they maintain parity between their direct and in-direct channels. In other words any rate discount from a branch or mobile manager is also offered via a broker and vica versa.

The difference being that the bank staff typically have their bonuses based on what they dont giveaway, a broker is paid the same rate irrespective of whether you get the maximum out of the bank by way of discounts or not.

[Shamrock]

That makes sense Rogue1, it also explains why I've at times felt like I've beaten my head against a brick wall dealing directly with bank staff!

[Shamrock]

Up to 78c now, from a low of 67 albeit on light volume. Maybe a contrarian at work?

[Steve]

Possibly the interim result due out in the next couple of weeks, will show that MPM is still trading above the prospectus forecast?[?]

However it must be the future that is of concern...

[moimoi]

Note to John and Mark up at NZF....

You'll need more than 82 cents to mop up mine.

Moi.

[Halebop]

Even at 82 Gould Holdings profit is assured. I hope punters are a little more circumspect next time Gould comes to market.

[moimoi]

amazed that some shareholders accepted offer at .82 from NZF when share price has consistently traded above .82 since offer was announced. HELLOOO!!!

Looks like the attempted 2nd mop up offer is on its way.

[xx(]moi.

[Fisherman]

Posted - 18/11/2005 : 11:21:44 AM
--------------------------------------------------------------------------------
Note to John and Mark up at NZF....

You'll need more than 82 cents to mop up mine.

Moi.

Moimoi

At what price do you think the offer will be ????

HOLD MPM NZF

[JAMP]

I have just revised my on-market sell order upwards by 5 cents per share. I don't wish to be taken out of the game too quickly.

I personally suspect they will pitch around the $1.00 per share mark. Having said that, there was never any doubt (in my mind) that they would come back to have another bite at the cherry...so they may pitch a little higher to ensure the process doesn't become too protracted and drawn out.

Regards JAMP
NZX: AIA LPL MCH MPM MVN NZO NZOOD PPG RBD SAN SKX SPN
NZAX: CVT NWFOA SAT
Unlisted: BRK

[Paper Tiger]

OK folks, Todays stand in the market is by Liberty Finance for some MPM.

Now, they already have more than 10%....

Update:
Looks like they want to go to the 19.99% mark but only want to pay $1.07 a share [V]

[moimoi]

PERFECT.....

keep it up...

even more reason to hold.

:-) Moi.

[moimoi]

If one assumes that Liberty and NZF were happy being in together on this.....

Then is this a cheaper way of them obtaining over 90% ownership between them? Rather than NZF's offer closing, redocumenting and relaunching at a few cents higher.?

NZF's offer seems to have had a rather slow uptake with them scratching along at 1% a day....

[xx(]moi

[rymndchn]

Looks like Liberty and NZF together may already have the 90% necessary to do a compulsory takeover.

Based on todays SSH statements:
Liberty has 18.3%
NZF has 72.86%

Of course this assumes that they are happy to be in partnership, and they will probably have to restructure and create a joint venture before launching a takeover bid to mop up the remaining shares.

It'll be interesting to see what is going to happen in the next few weeks.

[Fisherman]

Is it correct that together that they could do a takeover at a lower amount than $1.02 ? to mop up the balance of shareholders !!!!

[paul29]

More people seeking independent mortgage advice
Friday, 17 March 2006, 10:11 am
Press Release: Mike Pero Mortgages
MEDIA RELEASE FROM MIKE PERO MORTGAGES: 17 MARCH 2006
More people seeking independent mortgage advice

Increasing numbers of existing and potential homeowners are seeking the expert advice of mortgage brokers, says Mike Pero Mortgages chief executive Jeff Staniland.

“We have noticed that with house prices and interest rates continuing to fluctuate, more homeowners are seeking independent advice before they commit to a mortgage,” says Jeff Staniland.

Fifty-three percent of people surveyed last year said they would consider using a mortgage broker when taking out a new mortgage or refinancing an existing mortgage. This was up from a figure of 44 percent saying they would consider using a broker in similar surveys carried out in 2002 and 2003.

“There were a variety of reasons why people did not want to use a broker, the most common of which were they were happy with their bank, they preferred to do it themselves, they preferred dealing directly with a bank, or they worked in the finance sector.”

Very few people said they did not know enough about mortgage brokers (only 6 percent) while 7 percent said they had tried a mortgage broker before and decided not to use one again.

“We also found a few people had mistaken ideas about how mortgage brokers work.”

Around 10 percent mistakenly thought that using a broker was more expensive than going direct to a bank, while 7 percent mistakenly thought banks provided better rates than a mortgage broker.

“The NZ Mortgage Brokers Association requires its members to represent at least six lenders and to be independent. Mike Pero Mortgages has relationships established with 16 lenders and provides independent advice to its clients, based on their circumstances and our experience,” says Jeff Staniland.

“We have also found demand for domestic mortgages this year has continued its strong performance, following record months for Mike Pero Mortgages in October and November last year.

“As expected, many people who took fixed mortgages two to three years ago are now having to choose whether to move to a floating rate or refinance on another fixed term,” says Jeff Staniland.

ADVERTISEMENT
Around 80 percent of home-loans in New Zealand are fixed. While floating rates have moved significantly higher in the past three years as a result of the Reserve Bank’s tightening cycle, fixed rates have been less affected.

“Floating rates are now between 9 and 9.55 percent at most lending institutions, while fixed rates are up to two percentage points lower, depending on the length of the term and the lender.”

“But mortgages are not just about headline rates. A small difference in the headline rate can be more than offset by other charges and fees, as well as any costs associated with exiting the mortgage after a few years, as most people do.”

By the end of its current financial year on the 30th June, Mike Pero Mortgages estimates it will have processed almost $4 billion of home loans in the past year three years alone.

This compares with an estimated $7 billion of home loans in the company’s first 13 years (1990 – 2003)

[moimoi]

hi,

is this latest takeover effort a foregone conclusion.?

Together they have 94%...my query is...with their combined holdings are they now in effect compulsorily aquiring the remainder?

or

do they have to obtain 90% of the remaining 6% before being able to shut the gate.?

cheers
Moi.[:I]

[Steve]

By joining their holdings, they now have over 90% which means that they can compulsorily acquire the balance once the deadline passes...