There is a lot of misinformation out in the market. I’m using this blog to provide a bit more perspective about why there is no need to panic about rates
With fixed rates having increased we once again look at mortgage strategies, but nothing has really changed from our previous recommendations. It is all about having a clear strategy and not wavering when confronted with irrational market panic!
Short term rates have not increased (and are not increasing) so it worries me when I hear everyone saying things like “rates are going up.” To be specific, only long-term rates are going up – and you need to consider your strategy accordingly.
2009
What Rate is Best? Post-OCR Rate Update
Filed under: Interest Rates, Mortgages, NZ Economy
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.
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”.
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