Interest rates and banks: Mylend
Wow, we have finally started to see some genuine competition and traction with the banks and their interest rates.
It’s felt like we have had a long journey with high interest rates post Covid-19, but in fact, it’s similar traction to what we all faced with our home lending 12 years ago, and when those rates started to drop, they did it quickly over the course of 18 months.
Finally, we are seeing some good news with the OCR (Official Cash Rate) dropping to 5.25%. While this isn’t a big deal for some, it really does impact how the banks look at their interest rates. The flow on affect is huge – both for home-owners and investors alike.
That leads into the next conversation – how long should I fix my lending for? Well, it’s different for everyone and depending on their situation, but most of our clients are leaning towards fixing for 1 year – 18 months.
It will give stability with repayments, and will hopefully have interest rates nice and low when they are due to refix again – gets you over the hump if you like. As your mortgage adviser, we are receiving slightly lower rates than are advertised. And if you are looking to do a refinance to another bank, you will likely get a generous cash contribution as well – this is a great way to offset those rising insurance/rate costs.
I have longstanding relationships with all the banks across Canterbury and can negotiate on your behalf to get the very best deal for you. Better still, the banks pay for this service, it’s free for the customer. Get in touch if you want to have a confidential chat about your Interest Rates with your bank, there is nothing better than having control of your finances.
