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Up until recently, fixed-term mortgage rates in New Zealand were at record lows. Our advice suggests all that's about to change - so what does that mean for you?
The writing appeared to be on the wall this month, when we were notified that most of the major lenders had increased their fixed-term mortgage rates. After so many months of seeing rates progressively decline overall, and while we all knew this day would come, it was certainly something to make us stop and think.
While predicting mortgage rates is a little like predicting the weather, many experts are expecting rates to continue to trend upwards in the short to medium term.
So, why are mortgage rates rising?
In simple terms, it's because the costs of overseas funds are increasing, due to world markets (particularly following the Trump election).
Even though New Zealand's Official Cash Rate (OCR) continues to fall, all that means is that the banks will seek to borrow funds overseas, where the returns are higher. This means New Zealand borrowers will feel the effects of international market fluctuations a little more deeply.
What does it mean for you?
Read the full article here to find out:
Whatever your situation it can be extremely worthwhile to talk things over with a non-aligned professional - even if it's just to bounce an idea around or ask a question that's been nagging at you.
Having an adviser on your side when it comes to negotiating and meeting with banks, securing loan approvals and handling the paperwork, can deliver significant advantages. We can review your personal situation together and, if it's the right move, will structure a mortgage to suit you - whether it is for your first home or your seventh.
For a no-obligation chat about your mortgage options, send Cole Murray an enquiry today or call Steve Davies, Mortgage Advisor directly on 0800 327 956.
Image Credit: Mortgage Rate Chart thanks to mortgagerates.co.nz as at 30/11/16.
The information contained in this publication is general in nature. It may not be relevant to individual circumstances. Before making any investment, insurance or other financial decisions, you should consult a professional financial adviser.