What should I do when my fixed interest rate comes up for review?
Good question, one that many ask.
To start off with it’s really important to think about how interest rates rising could affect your budget, are you guaranteed future pay increases or do you plan to go down to one income in the next few years in order to start a family? Many different life events can affect your current budget and it pays to future proof yourself as best as possible to prepare for these times.
In other words we believe it’s about making the best decision to match your current situation and future goals.
How Interest Rates are Determined;
The official cash rate set by the Reserve Bank of New Zealand is what is used to determine the rates that the banks and institutions provide. Right now the official cash rate is the lowest it has ever been, check out the latest announcement here.
What is going to happen with Interest Rates in the Future?
Unfortunately there is no crystal ball (as you say) to tell us what interest rates are going to do, there are however indicators and tools from top economists all over the country that keep up to date with how national and international events can affect our official cash rate (OCR) in New Zealand.
The ANZ as well as many of the major banks bring out a fantastic monthly report that includes graphs at the end of it with indicators of what their team of economists see for the future of mortgage interest rates. Just remember there are many unforeseen events that can change this, so at the end of the day doing a budget and seeing how much room you have for movement is really important.
How The Mortgage Girls Can Help;
How we see it at The Mortgage Girls is we like to give you all the tools and options to make the best decision to suit your current / future situation as best as possible. We will negotiate with your current bank and/or multiple banks in order to give you options to make a decision.
We are a free service and only a phone call or email away.
0800 864 864 or firstname.lastname@example.org
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