The Latest News on Mortgage Rates

Why Are The Rates So Low?

By the end of 2018, home mortgage rates dipped below 4%, the lowest recorded rate since the 1940s! Rates are still hovering around that 4% mark with many lenders offering even further sweetners at various times.

So, why are rates so low?

Many events have combined to bring interest down to the current level. The influx of springtime and summer house sales, the steady OCR rate, the steady demand for houses in the major centres.  The economy remains strong – with low unemployment and inflation rates.

This adds up to lending confidence. The banks are willing to lend to people who are able to comfortably service the repayments. With low-interest rates, your monthly repayments are naturally much more manageable.

What Does It All Mean For You?

With existing mortgages, it means that now is the time to make sure you are getting the best deal. No one wants to pay more interest than necessary, and your current mortgage could have you paying more than you needed..

Indeed when was the last time you reviewed the structure of your mortgage?

There are many different “products” out there in the market – from fixed and floating options, to offset accounts, and cashback deals. If you haven’t reviewed the structure of your current mortgage, then get going and do it!

You could see some significant savings, or even reduce the term of your mortgage which would be a big bonus allowing you to retire earlier if you wanted to.

If you are buying your first property then this the time for you to to get it right and the right mortgage is vital for a good start,

The banks are lending with confidence, at that means you could make significant headway on your mortgage payments while the rates are so low.

So don’t hesitate any longer. Now is the time to act and lock in all the advantages being offered.  These great conditions may not last for ever.

What Future Holds

Without a crystal ball, it is hard to predict exactly what the future might hold. Things can change in New Zealand and worldwide over the next two or three years and the results may not be so favourable they are now.  The less-than-4% rates are not expected to last for ever. All the banks offering these specials have put a definite deadline on when these special rates will continue to remain available. Maybe this may not happen for the next 2-3 and rates could remain steady but in real estate terms that is not very long.   It is highly unlikely that they will drop much further in any event.

While the rates are low, this is the time to consider buying your first home or renovations to your current home. What ever you do, it is wise to remember that whatever the interest rates are, you will still need to pay back any money you borrow. So, you want to ensure you are making sensible decisions and not stretching your finances too much.

Now is the time to review your finances and get some solid financial advice. Get in touch with us here at Mortgage Suite. We can help you to see what options are available for you and how you can best arrange your future. Drop us a line today for a free no-obligation chat.