Best fixing period

[prayami]

Hi,

My loan is about to expire in Sep 2014. As my current rate is low, I do not get penalty.
My question is:
For how long should I fix my loan: 3 years or 2 years?
I am getting this rate up to end of today:
3 years for 6.3%.
2 years for 5.95%.

Thanks.

[iwik]

There is no such best fixed period

It all comes down to how much risk you manage (size of loan and your income)

Top brass at squirrel mortgages thinks best to do in one year fixed lots at present, that it is a storm in a tea
cup the OCR climbing to a high figure.

Both rates you posted are cheap rates in the big scheme of things, I use to always fix for 5 years if the rates were reasonable and let the bank take the risk, Now I have a low loan I can afford to take more risk. Calculate your risk factor and You will know what is best for you.

[Craig Pope Mortgages]

Hi, everyone's circumstances are different but I would go 3 years as are quite a few of my clients

[muppet]

Therefore if I were a borrower at the moment I would seek to place over 60% of my debt at a three year fixed
rate.

Tony Alexander (BNZ economist) -latest newsletter