Your Fixed Interest Rate Strategy

Although there has been little change to floating mortgage rates, rates with terms of 2 years and longer continue to move gradually higher. This has occurred largely as a result of higher global interest rates (which tend to have a larger influence on New Zealand longer-term rates than local factors do), and rising funding costs. As is commonly acknowledged, it appears mortgage rates have seen their lows, and although rises from here are likely to be gradual, they are rises nonetheless. Whilst rates are not quite as attractive as they were a month ago, we continue to hold the view that it is worthwhile considering fixing 'a portion' of your mortgage for longer than 2 years to secure some longer term certainty in your interest rate mix. With the OCR on hold, 1-2 year mortgage rates are not likely to go up for a while hence the shorter term rates remain good value and allow you the opportunity to achieve a good balance of longer term certainty and shorter term cost efficiency. 

As always, we are happy to advise you with your loan structuring at any time. Please feel free to call us on 0800 38 48 48 or enquire here