Current Interest Rates

What rates are available?

Please note that these rates are the average carded rates (the advertised rates) and should only be used as a guide as rates can differ between lenders and often discounted rates are available.

Yet another reason to seek advice from a trusted source – why not contact me now?

OCR unchanged at 2.5 percent

11th March 2010

http://www.rbnz.govt.nz/news/2010/3924699.html

Brian's View

Is it time to Float or Fix
After months of borrowing advice saying floating rates are the way to go, there has been a change of tune from BNZ economist Tony Alexander. He now says the time may have come to fix rates at one or two-years.
To look at BNZ's OCR predictions in detail click here.
A word of advice : When think about fixing your rate take into account how a 1% increase would affect your lifestyle.

For more information on interest rates subscribe to this site or check periodically on my Blog section.

Interest Rate Reviews

As near on 80% of mortgages written in New Zealand are at least partly fixed, it would be fair to assume that at some stage mortgagees will be called to make a decision on what to do when the fixed term expires.

Automate, a machine that provides cash and other banking services on insertion of a special card, is a great service but, “automation letters” of a generic nature being sent to advise what a lender can offer on expiry of a fixed rate, is, in my opinion, taking automation a tad too far.

Humans unlike machines are well aware that change is a constant in our life so why offer someone something without first asking a few questions to see what changes have accrued since the rate was previously fixed.

Banks over the years have started to allow customers to make decisions that best suit them, but they don’t actively encourage it. I am not saying all banks are like that, but when was the last time someone sat down with you and asked a few questions to see if your current loan is still the best fit.

For example, have you ever been asked this question: “How much could you afford to increase your mortgage payments by, to save on interest payments over the next 12 months?” If you haven’t been asked this question, how could anyone advise you on a suitable plan. They can’t because the answer to that question is the foundation for both the loan structure and, to a certain degree, the interest rate?

Remember, the lowest rate is not always the best rate. For example, if the lowest rate was the five-year rate, but market expectations were that the one-year rate or even the two-year rate was likely to reduce below that level within a few months would it be wise to fix for five years? Maybe, may be not. A decision would also depend on how any change in interest rates would impact on your lifestyle.

What I am saying is, any decision should be based not only on market expectations, but also on “your” needs, wants, and expectations, and there is only one way to ascertain what those are.

I often hear brokers shouting, “OUR SERVICE IS FREE” which really irks me, as I think it downplays the worth of using a broker. Sure you don’t pay for using our service, the lenders pay us so we do get paid but, please note, such payment in no way affects the package we negotiate for you. If we didn’t do the work, they would need an employee to look after “your” needs, so make that all-important call to me now.