26/07/2019
How should you re-fix your mortgage interest rates? Lately lenders have started to offer a better rate for two years than for one year; they clearly are encouraging you to fix for two years: Why? NZ Advisor reports interest rate forecasts as follows:
"Westpac has predicted that the Official Cash Rate (OCR) will be cut in August and then in November, bringing it to an all-time low of 1% with the potential of it being cut even further. Westpac chief economist Dominick Stephens says there is also a possibility of the Reserve Bank cutting the OCR in September, depending on how weak the labour market gets. If this happens, there is a chance that the OCR could drop below 1% - a reflection of two years of economic slowdown for New Zealand."
So, you can chose the lower two-year interest option, or you can do what the banks are discouraging and go for one year only and take the likely lower rates next year, the difference typically is only six-hundredths of 1%.
What am I doing? I am happy with my 12 month fixed term arrangement, I see no compelling reason to change. Contact me if you want to discuss for your own situation, use the link https://krwfinance.nz/contact/ or ring me directly.
If you have a problem, concern, or complaint about any part of our services, please tell us so we can try to fix the problem.
