We've recently seen talks about interest rate increases in the media. There is still however a short-midterm view that interest rates will begin to fall in the second half of 2024.
However, if you are currently reviewing your mortgages (whether you're moving banks, or you simply have a rate expiring in the next 60-90 days) we strongly recommend getting ahead of this, so you are able to take advantage of rates which are as low as possible. As we always say, a small difference in interest rates can mean significant savings over the life of a loan - particularly when you're looking at several hundreds of thousands - or even millions of dollars of mortgage debt.
As recently as this morning we have had ASB and AIA(Sovereign) increase their 1-5 year fixed rates. These rates range from 7.45% to 6.69% respectively. There are however other main-bank lenders who can be quite a bit lower than this (Ranging from 6.99%-6.49% respectively - for example).
These differences in interest rates on a $500,000 mortgage equal savings of $2,300 over 1 year, or in the 5-year example, $5,000 (being $1,000 per year).
This doesn't even include the cash contributions that banks are giving to compete for your business.
If you are looking to review your mortgages, or have fixed rates expiring in the next 60-90 days and would like to have a chat, get
in touch now.
Ryan Smuts
4 September 2023