The time is right to fix loans to get the best interest rates on offer says an expert in the latest article on NZHerald. On PropertyTalk property investors say irrespective of market changes they use both fixed and floating loans across their portfolio to spread the risk.
The major lenders have recently cut their floating rates following the recent drop from 2.75 to 2.5 percent in the OCR so homeowners with floating loans will be more likely to keep the status quo. So far only one lender has cut a fixed-term rate so it’s understandable more than 60 percent of home owners are not taking action to pay off their loans faster.
Homeowners with relationships with mortgage brokers however are more likely to be aware of potential savings and so they are more likely to lock in the best rates on offer and thus save thousands over the term of their loans.
Kris Pedersen of Kris Pedersen Mortgages says many of his clients are reviewing their loans right now and they’re likely to fix to lock in the low rates on offer. Interest rates are probably as low as they can go so arguably the only way they’ll go from now on in is upwards.
Majority of many home owners are ignorant to the savings they could secure and they’ll only find out by asking a good mortgage broker for a break down based on the various fixed rates and terms on offer. Home loans need to be actively managed however lenders are less likely to offer this advice to their clients.
The cash rate has recently increased in the USA for the first time in nine years and this is likely to have a flow on effect here so now really could be the right time to lock in the fixed rates on offer.
This blog article was written for PropertyBlogs by Mobilize Mail.