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12 Month interest rates are particularly appealing at the moment. Kiwibank has most recently offered a 12-month fixed rate sub 4% and many banks are moving in the same direction. This is fantastic for the next 12 months, however it pays to think about what you are going to do post the expiry of this rate.

I get asked daily what’s happening with interest rates. To answer this question, it’s useful to first define what may affect interest rates. The major influence on interest rates is inflation. As inflation rises, interest rates rise to curb inflation (spending). As inflation falls, interest rates fall to spur spending and economic growth.

In typical tabloid fashion, the media desperately try to make news out of anything that drives fear and every eight weeks or so we have the anticipated build up to an OCR announcement.

When it comes to your mortgage it pays to know it inside and out. After all, when such a large sum of money is at stake the last thing you want are surprises and unexpected costs.

The reality is that the industry is looking to mortgage margins to restore profitability from a tough 2016.

Banks are blaming higher mortgage rates on higher funding costs even with the OCR at historic lows. That’s a convenient half truth. There are three factors in play.

The cash rate has been cut once again by the Reserve Bank, but unlike previous cuts, this one has had a somewhat unexpected result: Many major banks aren't cutting their rates to match.

The Reserve Bank is still talking about low inflation and the potential for the OCR to decrease further, so how is it that in this environment mortgage rates can go up?

Here are JB's initial thoughts on this change and what that might mean for you.

With the OCR widely tipped to drop by 0.25% on the 11th of August - following the latest round of RBNZ policy changes - those of you in the middle of property transactions need to be aware of the potential impact.

The official cash rate (OCR) fell this week to 2.25% - it's lowest level since it's introduction in 1999. It is dropping because we have negligible inflation, the dairy sector is in trouble, and our currency is too strong.

When he had a look at the RBNZ OCR decision, Westpac Chief Economist Dominick Stephens had a couple of choice statements.