Rethink Your Mortgage Rates With Rethink Group

The Reserve Bank has slashed the official cash rate to a fresh record low of 1 per cent, sending mortgage rates down and the New Zealand dollar tumbling to a three-year low. The cut is double the 0.25 percentage point cut that had been widely expected by analysts. ASB reacted within minutes, announcing its variable home loan rate would fall by 0.5 percentage points to 5.2 per cent on August 14 for new customers, with existing customers getting the benefit a week later. BNZ also announced it would cut its floating mortgage rate by 0.5 per centage points to 5.3 per cent, and both banks cut their two-year fixed rates by 4 basis points to 3.75 per cent.

Rethink Group is there to help you if you are rethinking your mortgage to take advantage of these record low rates. The mortgage industry is having a pricing war going on with the banks and Rethink Group say it is perhaps time to break your current fixed terms and take advantage of these record low rates.

Mortgage rates have been in free fall for quite some time now and, while this is ideal if you're in the process of buying your first home or remortgaging, it can be extremely frustrating if you took out a long-term mortgage a few years ago and are now locked into a much higher rate. In this case, doing the sums could be a worthwhile exercise for a lot of borrowers.

Generally speaking, any short-term gain from interest savings may be offset or even outweighed by the break cost. For this reason, you should carefully consider whether breaking your fixed rate home loan is a good idea. However if a reduction in your regular home loan repayments would make a difference right now, then Rethink Group can talk you through your options, including alternatives to breaking your fixed rate home loan, so for more information on mortgage advisors, New Zealand investments and life insurance advisors please go to https://rethinkgroup.co.nz .