As expected, Reserve Bank Governor Alan Bollard left the Offical Cash Rate (OCR) unchanged - sitting at a record low of 2.50%. Read the full announcement here.
The central bank's forecasts imply that we won't see any rate rises before the second quarter of next year; and there just may be a slim chance of a rate cut which could be a likely repsonse to Europe's crisis significantly worsening.
What this means is that mortgage interest rates are certainly not going up; on the other hand whether interest rates drop depends on the position of the banks and their cost of funds.
You & Your Mortgage
Whilst no one can denigh that current low interest rates are beneficial, deciding on whether to fix your mortgage and lock in an interest rate for a number of years rather than stay floating still comes down to what is right for you and your family.
"Its not the rate you pay but the rate you repay your mortgage" simply put, the more you can pay off your mortgage reduces the overall principal loan amount which results in less interest you pay!
For a no obligation review of your options contact a mortgage adviser today!
freephone 0800 823 823 or meet our team here
or email enquiries@mortgagepeople.co.nz
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