Mortgage rates are still very much on a downward track at the moment, but some of those longer-term rates—particularly the two-year term—don’t have much further to go to the bottom.
Most lenders are currently offering a two-year fixed rate of 4.99%, which is a really attractive rate.
It's already right at the top of the 4.5% to 5% band where mortgage rates are expected to settle, once the Reserve Bank gets us back to a ‘neutral’ Official Cash Rate (OCR) later this year. So we're not likely to see that two-year rate come down further anytime soon.
Shorter-term rates are still sitting a little higher, and it’ll probably take a couple more OCR cuts before we see those get down below 5%.
For those fixing or refixing their mortgage right now, that 4.99% two-year rate is arguably where you’re going to get the best value for money.
If you wanted to hold off a little longer, you have the option of either floating short-term, or fixing for between six months and a year, in anticipation of potentially being able to roll off onto an even lower rate when that loan matures.
Check back in again next week for the latest news on New Zealand interest rates.
