For the past 12 months mortgage rates have been at historic lows. There has been talk for some time that rates will eventually increase and 2010 has been slated as the year that will happen. Some Economists have talked about as early as April whilst others are still talking September. Timing aside,
Most first home buyers do not know that Kiwi Bank and BNZ are the most expensive lenders if you are borrowing over 80%.
Neither Kiwi Bank or BNZ disclose their low equity fees on their web sites. On the positive side they are still both lending up to 95%.
If you are borrowing over 80%
When you first eyeball your mortgage it can seem scary borrowing a hell of a lot of money along with the realisation it might take 25 years to pay off.
First up don’t stretch yourself too far. Work your budget on making repayments based on an 8.50% interest rate even if your actual rate is below
This week in the NZ Herald Ask an Expert I got the following question …
“I have just fallen in love with a house which is probably about $100,000 out of our price range but I figure my income can only go up and interest rates are so low. My question is, is it outrageous
Long-term wholesale interest rates have been dropping, which reinforces what we’ve been saying for a while – that the market overcooked its forecast on interest rates. Rates will increase, but not as quickly as the market initially priced in. The 5 year funding rate has dropped half a percent to 5.30% since it peaked
ASB has just increased it fixed rates again! It has been the first bank to lift its fixed rates every time since rates started going up in September 2009. (Four rate increases.) I’m wondering if I’m the only person that notices these things. On the other hand, and to their credit, they were the