Interest Rates Steady
As the year starts and following increases in mortgage rates in the latter part of 2009, rates seem to have stabilised for the moment.
However, in view of the increasing cost to our banks of sourcing money offshore and higher investment expectations of Kiwis depositing money with their bank, it is likely that money is going to cost us more by the end of the year. How much more is open to debate, but certainly we can expect at least a 1-1.75% lift.
So what to do? There’s no doubt that for future-proofing household budgets, fixing some of your new loan for two or three years could be a strong move. Best to talk it over with your bank though, they will be able to advise and talk through the longer term scenario….where is the cost of money going to be in several years time?
Filed under: REAL ESTATE | Tagged: Real Estate