Managing High Interest Rates and Mortgage Repayments

Oct 10, 2023 6:27:00 AM

With the Reserve Bank of New Zealand holding the Official Cash Rate (OCR) at 5.5 per cent in October 2023, borrowers are having to get used to higher interest rates and mortgage repayments, as a drop in interest rates this year seems unlikely. For those deciding whether to refix or refinance the mortgage, or for those grappling with a higher cost of living, here are 3 strategies to help reduce the impact of higher interest rates on mortgage repayments.


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Topics: Interest Rates, Financial Advice, Financial Hardship

5 Things to Know Before Locking in Your New Interest Rate

Apr 13, 2023 10:08:27 AM

Earlier this month, the RBNZ increased the Official Cash Rate (OCR) by 50 basis points, from 4.75 per cent to 5.25 per cent. It’s the 11th successive increase and takes the OCR to its highest level since December 2008. As some New Zealand mortgage holders prepare to re-fix their mortgage in the next 6 months, many are likely to see their interest rates double from 3 per cent or less to more than 6 per cent. Before locking in new interest rates, it’s important for borrowers to know these 5 things.


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Topics: Interest Rates, Variable Interest Rate, Fixed Interest Rate, Financial Advice

Are You Getting The Most Competitive Rate Available?

Mar 8, 2023 9:29:09 AM

In recent weeks, we’ve seen a flurry of heavily discounted, “under the line” mortgage rates from some New Zealand banks, as they struggle to hit home loan targets in the wake of a floundering property market. As more first home buyers enter the market encouraged by lower house prices, and some existing homeowners near the end of the fixed term portion of their home loan, it’s timely to remind borrowers of the importance of comparing interest rates to ensure you’re getting the most competitive rate available to you.


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Topics: Interest Rates, Financial Advice, Buying and selling

10 Good Reasons to Use a Mortgage Adviser

Aug 24, 2022 3:42:38 PM

Mortgage advisers account for close to half of all mortgages written in New Zealand, and it’s not hard to see why. With benefits that include time and money saving, more choice of home loan products, and ongoing guidance even after home loan approval is secured, working with a mortgage adviser can help alleviate a significant amount of stress for borrowers. Read on to find out 10 good reasons to use a mortgage adviser.


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Topics: Interest Rates, Home Loan, mortgage adviser

Tips for Dealing With Rising Mortgage Rates

Jun 7, 2022 3:11:03 PM

Rising interest rates are bad news for first home buyers and borrowers alike, with new homeowners (those who bought homes in the last 18 months) facing much higher mortgage repayments for the first time. With the Reserve Bank of New Zealand signalling further interest rate hikes are on the horizon, how can homeowners avoid placing strain on already tight budgets and stay on top of bigger mortgage repayments? Here are some options.


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Topics: Mortgage Advisers, Interest Rates, Refinancing

3 Tips for Property Investors Navigating High LVRs

May 19, 2021 3:43:37 PM

In an effort to put the brakes on a runaway property market, from 1 May 2021, the Reserve Bank of New Zealand has implemented Loan to Value Ratio (LVR) restrictions that impact the way property investors access mortgage finance. Going forward, a maximum of just 5 per cent of banks’ lending can be done at above 60 per cent LVR. For property investors, that means having at least a 30 – 40 per cent deposit. Here are 3 tips that could help property investors navigate high LVRs.


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Topics: Selling, Property Investment, Interest Rates

5 Questions to Ask Before Fixing Your Interest Rate

Apr 30, 2021 12:33:13 PM

Interest rates have hit record lows over the past year, but an improving economy is likely to put pressure on interest rates rising sooner than expected. Locking in a fixed home loan rate could be the answer for borrowers seeking certainty for a fixed term. As always though, the best solution depends on borrower’s own circumstances and it’s advisable to seek advice from a mortgage adviser before making any interest rate decisions. If you are considering fixing your home loan rate, here are 5 questions to ask.


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Topics: Selling, Interest Rates, First Home Buyer

Fixed, Variable and Split loans: What’s right for you?

Mar 11, 2020 2:01:28 PM

There’s no better time than right now to review your home loan structure and mortgage interest rates. Time to tidy up those external debts, refinance to a better interest rate, or refinance to release equity to fund that new car, boat or investment property. If you’re not sure what repayment structure works best for you, here’s a guide to understanding the different types of loans.


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Topics: Interest Rates, Home Loan, First Home Buyer, Variable Interest Rate, Fixed Interest Rate, Home Loan Advice, Mortgage Advice

Official Cash Rate at an all-time low

May 22, 2019 1:18:35 PM

The Reserve Bank has cut the Official Cash Rate (OCR) for the first time in two years; down 25 basis points to 1.5 per cent, the lowest it’s ever been. Retail banks have been quick to pass on the rate cut: Good news for home owners and first home buyers.


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Topics: Interest Rates, Lenders, nz mortgage, NZ Mortgage Adviser, Home Loan Advice, Mortgage Advice, Borrowing Advice, Borrowing Capacity, OCR

Mortgage Rates Continue to Drop

Apr 15, 2019 10:55:21 AM

The heated mortgage battle amongst home loan providers could get even more interesting, as economists now believe the Official Cash Rate could be cut as soon as May or August 2019, and interest rates could start to fall in August this year. This follows comments made by the Reserve Bank of New Zealand at the end of March 2019. A home loan review could help you decide whether refinancing is the right option for you.


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Topics: Interest Rates, nz mortgage, NZ Mortgage Adviser, Home Loan Advice, Mortgage Terms, Mortgage Advice, First time homeowner