Twine Financial Advisers

08/10/2025

OCR Cut to 2.5% — What it means for your mortgage -

The Reserve Bank has just cut the Official Cash Rate by 0.50% to 2.5%, a larger move than expected. Mortgage rates will take a few weeks to settle, and future drops are likely to be smaller from here. If your fixed term is coming up soon, short-term fixes or floating may give you more flexibility wh...

21/08/2025

Return of the Stimulus: OCR Cut to 3.00% -

It’s both confirmation and surprise: confirmation of the gradual easing we’ve been expecting, and a surprise in how clearly the Bank has shifted away from “neutral” into stimulus.

31/05/2025

May 2025 OCR Cut: What should you do with your mortgage? -

If you're floating, coming up for renewal, or not sure what strategy suits you best? 👉 Reply to this email or book a free chat here — we’ll help you build a loan structure that fits. Ngā mihi, Eugene & the team at Twine Financial Advisers  

10/04/2025

OCR Cut to 3.50% — What It Means for Your Mortgage -

The Reserve Bank has just reduced the Official Cash Rate to 3.50%, and while this supports lower interest rates, global trade tensions are starting to stir the waters. So, what does that mean for your mortgage, borrowing power, and property goals? Whether you're a first-home buyer, investor, or plan...

09/10/2024

RBNZ Cuts OCR by 0.50%: Should You Lock In Your Mortgage Rate Now? -

It’s exciting to see the trend beginning to turn around, aligned with spring, it feels like the general mood in the industry is lifting. However, this is a cautionary tale, we can get swept up in the sentiment and forget why interest rates are now falling and how to make decisions around this.

04/05/2023

We're thrilled to share the news that Eugene Bartsaikin has been named Adviser of the Year at the 2023 New Zealand Mortgage Awards!

This prestigious award recognizes the best mortgage adviser among independent and franchise mortgage firms in New Zealand. This is a huge honor and a testament to Eugene's and the Twine Team's commitment to our clients and expertise in the mortgage industry. Being recognized as the best among other named advisers is no small feat - and we couldn't be more proud!

We want to take a moment to say thank you to all of our clients, our wonderful Twine team, and our business partners. Without your continued support and trust in our services, we wouldn't be where we are today. This award is just as much a reflection of your loyalty as it is of Eugene's and our team's hard work and dedication.

Thank you from the bottom of our hearts for your continued support! We are truly humbled and grateful.

Read more:
https://keymediaawards.com/nzmortgageawards/winners-excellence-awardees/2023-winners-excellence-awardees/?q=2023

25/01/2023

This morning's article captured the realities of what these OCR hikes have intended to do and how it's impacted an everyday family.

I admire the Rubin family for bringing this up publicly - It's not easy to put yourselves out there.

However, it doesn't have to be like this. Perhaps their story will inspire others to adjust their perspectives.

🔵 Economies go through cycles of boom/bust.

This is outside the control of the everyday family. However, we can choose how we prepare for this fundamental fact, and how we respond when we're in the midst of the storm.

Has the RBNZ overcooked it? Maybe? However, this is simply outside our control as to what they do and the expectations they set. We need to acknowledge that throughout the course of home ownership, there will be economic ups & downs, and prepare accordingly.

🔵Property is a long-term commitment.

When carrying a home loan, homeowners carry the capital gain/loss on the entire value of the property as well as carrying the interest rate risk on the loan we have.

In the long term, there is capital gain. However, it's not always linear - there are seasons where it's excessive, and seasons where it underperforms. However, if you draw your timeframe out long enough the variations almost disappear.

Interest rates can be fixed between 1-5 years, and the way loans are documented in New Zealand means we are fortunate to have quite a lot of flexibility as to how we manage that interest rate risk.

✔ Splitting interest rate renewal opportunities.

Since we don't know with accuracy what the rates will be in the future, we should consider splitting the interest rate risk to minimize the fluctuation in the market.

✔ Over-pay your loan.

Let's say you decided to have some of your loans on the cheaper short-term rates - at a minimum consider setting your payments up as if they were on the most expensive rate. Better yet, imagine they were set at the level of the banks' stress-test rate. That way you over-pay the loan, and worst case scenario if rates rise to that level there is minimal change to your repayment commitments.

Some banks have re-draw facilities which later become buffers when the economy takes us by surprise

✔ Have an emergency fund.

Life happens! Work to set up an emergency fund to ride out the wave - this is what affords us the option to wait rather than the emergency to sell in a down market. Target at least 3 months of your expenses & financial commitments and use a revolving credit or an offset loan to have those savings work for you. If you've used your entire savings to get on the ladder, prioritize building this emergency fund above other expenses where possible.

✔ Create a strategy.

How do you plan to become mortgage-free? Downsizing? Investing? Over-paying? Clarity with a strategy takes the guesswork out of what to do.

Rising inflation is likely to bring even more pain to young home owners.

22/01/2023

Rate Inversion! ASB's latest advertised rates have shown an inversion in the interest rates.

🎯What does this mean?

⚡️ Short-term mortgage rates are now more expensive than long-term interest rates.

⚡️ This foreshadows a recession or at least downward pressure on mortgage rates in the short-medium term.

⚡️The last time this happened was back in April 2007 when the 1-year rate was 8.80% and the 5-year rate was 8.55%. This preceded the upcoming economic crash, quite a few months before the dominoes began to fall.

🎯What do we do with this information?

⚡️ Although the last time this happened preceded a recession, it doesn't guarantee that's what's going to happen.

⚡️Based on such a small difference between the short and long-term rates there is no obvious choice as far as which rate presents good value.

⚡️Consider your own lending structure around when your loans come up for renewal - splitting the interest rate risk between different terms is a good idea.

⚡️ Consider avoiding the extremes of the 6m and 5-year rates. There is a possibility the rates are even higher in 6m time for the short-term rates, and based on an inversion now high likelihood rates do start to drop in the medium to long term making the 5 years not worth it.

⚡️ Other banks haven't moved yet - but will do so inevitably. ASB's move is reflective of the market so it isn't a surprise. If your loans are up for renewal within 60 or so days, now is a good time to lock something in.

Reach out to us and we'll assist!

13/12/2022

Should you Break & Refix?

The purpose of this exercise is to solve the problem of the uncertainty of a future interest rate which is an unknown factor. Finding out what the unknown would need to be will identify whether to break & refix the loan.

Let's explore today in general how to calculate whether to do so. This is however a financial decision, so talk to us to assist with an interpretation of the results in your own situation. If you'd like the calculator, let me know and I'll send it to you.

What options do you have?

1. Leave your loans as is.

This is your base case scenario that you compare against as you’re already locked in. You can leave your rates as they are and lock in a new rate 35-60 days before your renewal depending on the bank. The unknown factor is what the rate will be in the future – what we will call the ‘comparable rate & term’ for the purpose of this exercise.

2. Break & Refix now*
Here you are comparing that it’s better to refix now; pay the break fees (if any) rather than wait for the ‘comparable rate’.

*Break fees are dependent on the lender and your existing loan. Actual costs can only be determined by checking with the bank on the day. You can find this out by contacting your bank or asking your Twine Adviser to find out on your behalf.

However, generally, break fees are nil or very low when you break from a lower rate onto a higher rate. Whereas, when you break from a higher rate onto a lower rate, there usually is a break fee which is representative of the banks loss for you to exit out of the contract.’.

Scenario 1- Break & Refix onto a higher rate

If you decide to leave it as is, you’re betting the future rate will be less than the ‘comparable rate & term’. Referring to the example below, you are betting that the rate offered 35-60 days before the expiry will be less than 6.91% for 1 year 9 months (closest is the 2-year rate).

If you decide to break and refix now and forego the savings of your currently lower rate to lock in a higher rate today. Here you are betting that the future rate will be a higher ‘comparable rate’.
Under the below example, you are betting that the rate is likely to be higher than 6.91% for 1 year 9 months (2 year fixed rate is closest) so is better off to break now.

Scenario 2- Break & Refix onto a lower rate

Let’s assume mortgage rate started to drop, and you’re exploring breaking out of a higher rate onto a lower rate. You will likely have a break fee in this situation so please ask us or the bank to enquire about the actual break fee the bank will have.

For the sake of this example, we’ll assume you’re already fixed at 6.59%, and mortgage rates for 2 years are now offered at 5.29%, albeit with a $1,000 break fee.

If you decide to keep your loan as is, you’re betting the future rate will be less than the ‘comparable rate & term’. Under the below example, you are betting that the rate offered 35-60 days before their expiry will be less than 4.54% for 1 year so is better off still paying the higher rate right now with the view rates are still dropping.

If you decide to break and refix now, pay the break fee and get certainty from the new lower rate. Under the below example, you may rather lock in now for 2 years at 5.29% as they are betting that rates are unlikely to drop as low to 4.54% for 1 year before their renewal date.

Hope this has been helpful to shed some insight on the decision! Feel free to reach out as to how it can be interpreted for you.

23/11/2022

We're celebrating our 5th Birthday! 🥳🤩

We’ve grown and evolved throughout these 5 years; we’ve achieved beyond what we thought was possible when we started this business. It really has been a roller coaster of a ride, especially the last couple of years with Covid-19 lockdowns, property booms, then inflation and economic dip. Let's not forget constantly changing bank policies! Yet we are still powering through and staying strong through these great changes.

(Read more here - https://twineadvisers.co.nz/twine-turns-5 )

Special thanks to our wonderful Twine team - each of you have been an essential part of Twine's journey and success. Thank you for your dedication, hard work and staying strong as we ride the wave together. Without you we couldn't have come this far!

To our clients, business partners, family and friends – Thank you for choosing to work with us, supporting us and standing with us at all times. You have embarked on this journey with us and, in many ways, we have grown together to reach new levels of success.

Cheers everyone! Looking forward to more glorious years of success ahead!❤️🤩

Here's a few photos to go down memory lane 😄🥹

25/10/2022

Twine Market Update - October 2022 - NZ's Inflation at 7.2% 📈

How would a rise in NZ's inflation to 7.2% impact the NZ property market and interest rates? What can you do to manage your interest rate risks?

In this market update, we explore how a rise in NZ's inflation to 7.2% impacts the NZ property market and interest rates.