colinrealestate

Most mortgage rates are lower this month compared to last month, with only the floating and six month rate unchanged. With some mortgage rates on offer now at levels not seen in 50 years, there is clearly some value to be had in fixing for short terms such as one year.
We do not expect the RBNZ to cut the OCR – but we acknowledge that it is a possibility. With OCR cuts ‘baked in’ to specials like the one year, it is debatable whether mortgage rates would fall much further even if the OCR did go lower. We therefore see value in the one year rate at the moment, but would avoid longer terms which will only be favourable ex-post if interest rates start to rise.
Speak with your Mortgage Broker or Financial Advisor to find out the best options for your situation.

Filed under: REAL ESTATE | Tagged: Real Estate