colinrealestate

Our National Office keeps in close contact with the banks regarding funding policies, propositions and predictions for the future. For much of the first part of this year all banks were predicting two things:
1. Interest rates for variable-floating loans will climb
2. the days of low interest fixed term loans were over – “never again will interest charged on fixed rate loans match or better variable rate charges.”

They say a day is a long time in politics and it seems a month or so is a long time in banking! What we now know is that with the world economy [and our own] stalling, reserve banks are realizing they would kill any growth if they raised interest rates. So variable – floating mortgages are now predicted to stay where they are until at least June next year.

On the other front, fixed rate costs are dropping and presently, a two – year fixed rate loan will cost close to the floating rate, something that many NZers are already leaping on. Best advice is to talk with your bank.

Filed under: REAL ESTATE | Tagged: Real Estate