Interest Rates

[jareth123]

How long should I fix for and when should I do it?

Hi everyone,

I'm new here and new to the property game so just looking for a bit of advice regarding my mortgage. I am currently renting so haven't had a mortgage before. My mortgage has been floating for the past couple of months since I settled at 5.59%.

I was wondering if any experts could share their opinion on the length of time I should fix my mortgage for and whether I should do it now or wait for one more OCR drop?

If there is any information specific to my mortgage that you need just let me know.


Thanks in advance,

Jareth

[Viking]

More OCR coming by the looks of wheelers comments today. He won't be able to stop them. dollar too high so will have to go.

http://www.interest.co.nz/news/78597/reserve-bank-governor-says-wont-be-hiking-ocr-lean-against-over-valued-auckland-housing

[Viking]

http://www.interest.co.nz/news/78597/reserve-bank-governor-says-wont-be-hiking-ocr-lean-against-over-valued-auckland-housing

[Anthonyacat]

OCR highly likely to drop again, but this probably shouldn't impact your decision much. The longer term (2years+) rates have very little relevance to the OCR, much more to the international debt markets.

You could try holding on, but if the Bank of England or US Fed make a bullish announcement, global long term yields will rise much more than than any drop caused by Wheeler cutting the OCR another 0.25%.


In short, you should fix as long as you're comfortable fixing, for the certainty that entails. It'll always be a tradeoff between longer term certainty and lower short term rates.

[Wayne]

http://www.interest.co.nz/news/78597...ckland-housing

He has other tools now so doesn't need to try the blunt instrument of the OCR (which then affects the rest of the economy too much).

[Bluekiwi]

US jobs on an upswing, Fed potentially moving, does this mean long term rates start edging higher.

If OCR dips in December, this combo could steepen the curve.

[Eugene]

BNZ have offered us a cashback to move to them, just over 1k per 200k of borrowing.
Did someone on this thread say 1k per 100k of borrowing was achievable?
Thanks

[Orpheus1]

BNZ have offered us a cashback to move to them, just over 1k per 200k of borrowing.
Did someone on this thread say 1k per 100k of borrowing was achievable?
Thanks

Ive been offer 10k on 1.15m in loans, so sounds about right..

[Bluekiwi]

Get in on those cash backs as much as you can now, as I heard they are on the way out from most banks.

[Wayne]

Ive been offer 10k on 1.15m in loans, so sounds about right..

$5k on $600k from BNZ

[PTILoveYou]

I would recommend fixing 6 months, maybe 12 months longest, as interest rates will stay low for a long time.

[Eugene]

Wayne and Orpheus, how recent were these offers?
Thanks

[Orpheus1]

Wayne and Orpheus, how recent were these offers?
Thanks

Less than 30 days and good for 60...

[Wayne]

Wayne and Orpheus, how recent were these offers?
Thanks

a couple of weeks.

[Wayne]

There is another thread which goes into this a lot.

I wouldn't float - just too high.
Fix for 6 months and see what happens.
Others will probably disagree with me again but ...

If you are thinking of fixing long term (3-5 years) then the OCR won't matter - it affects short term (floating and 6mth really).