For property investors it’s a good day when the Reserve Bank decides to hold the official cash rate. A hold on the OCR usually means interest rates also remain the same or drop and that of course is good news for anyone with a variable home mortgage loan or a fixed rate loan coming up for renewal.
The central bank has left the official cash rate at 3.5 percent. There have been four interest rate increases this year equating to a full percentage point. The knock on effect of the percentage point increase has added an extra repayment of $65 per month per $100,000 borrowed on the variable rate.
Of course lots of borrowers took action after the first rounds of interest rate hikes and moved their variable loans over to a good fixed rate loan deal.
This action creates a feeding frenzy for the lenders and for some time there were some really good fixed rate deals on offer as competition for business was fierce.
New Zealanders have a collective $136.6 billion locked into fixed home loans, of which the most popular terms are overwhelmingly short periods of two years or less.
Mortgages worth $58.4b, or 30 per cent of the total, are on floating rates.
Kris Pedersen of Kris Pedersen Mortgages says his business has a reputation as problem solvers and in 2014 they have seen their fair share of challenges. The RBNZ LVR restrictions and new home exemptions have also kept Kris’ team very busy.
With specialist finance brokers on board too, there really isn’t much that gets through the cracks so to speak…umm so with Kris Pedersen securing a home loan just got a whole lot easier.
This blog article was written for PropertyBlogs by Mobilize Mail.