We have been commenting on this for a while and it appears that the banks are going to start to pass this on (although a number have not made comment or shown any price changes yet) the Reserve Bank is also conducting a further review to see if the Banks should hold even more capital on mortgage lending which could push interest rates up even further.
This review as per this article is likely to take a while but you should definitely assess whether it is worth breaking and refixing mortgages now before banks potentially start charging more with the additional capital requirements.
If you would like us to conduct a break fee analysis please contact us (09) 4864719.
Changes are coming which will include further credit control tools. It is likely to get harder to access investment lending and there is the chance that the cost of credit could rise. Action points to consider are:
- Topping up your investment properties now to either replenish revolving credit facilities or pay down debt on your personal residence
- Increasing revolving credit limits (note that this is lender dependent as some are very restrictive in regards to this).
- If you have investment builds or are signed up for purchases off the plans make sure your funding is in place.
- Assess your interest rate strategy
If you are wanting a meeting to discuss further to see how these may apply to your situation or if you would like us to assist with any of the above please contact us on 09 486 4719.
Read more articles written in June 2016 by Kris Pedersen that talks further about changes to the current finance market:
ANZ tightening some criteria especially around investment builds