On March 12, the Reserve Bank decreased the official cash rate (OCR) by 0.50%, from 3.50% to 3.00%. It is a dynamic world out there so we’ll keep amending this blog entry as banks respond to the OCR change.Share on Facebook
Don’t get too focused on the absolute interest rate. Simply being able to buy, and buying well, are where you will make money in the property market at the moment.Share on Facebook
You should look to start locking in five-year fixed rates from April onwards. Don’t leave it too late and don’t be too greedy. We’ve always said, “If the five-year rate gets below 6.00%, don’t even bother thinking about it, just lock it in”.Share on Facebook
If you do not know what you are doing (and you feel your bankers don’t either) then take personal responsibility and either do the research yourself or find someone who is qualified to help. Otherwise it could cost you thousands in extra interest over the life of the mortgageShare on Facebook
The next year won’t be easy, but us Kiwis are made of tough stuff. Maybe this global crisis is New Zealand’s opportunity to sneak back up the OECD ladder. For all those pessimists out there, it is time to roll up your sleeves and do something about it. We are a very small fish in a very big pond. Even if the pond shrinks, it is still a very big pond!Share on Facebook
Subscibe to our monthly newsletter by simply entering your email address below:
29 Hargreaves Street, St Mary's Bay, Auckland,
New Zealand 1011.
Tel: ++64 9 376 9688
Fax: ++64 9 376 9689
Copyright 2009 Squirrel Mortgages.
All Rights Reserved.