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Rates change all the time. Keep up to date with the latest activity so you can manage your mortgage and pay-it-off faster.
Guest post: Residential home loans: fix or float?
In this article, John Bolton, CEO of Squirrel Mortgages looks at how to pick the right fixed home loan rate term in a rising interest rate environment.
Monetary policy tightening already in place
Over nearly 3 years the OCR increased from 5.0% to 7.25%. But the 3-year fixed mortgage rate barely increased. Contrast that with the current situation of this rate rising 1.8% the past six months while the Reserve Bank’s cash rate has gone up only 0.5%.
Fixed rate hikes reflect market expectations
Mortgage interest rates have now risen by between 1.3% and 1.8% from where they were less than six months ago as banks have reacted to sharp increases in their cost of funds.
High inflation and low unemployment, mean high interest rates
The Reserve Bank has so far raised its official cash rate by a small 0.25% yet bank fixed mortgage rates across the 1–5-year terms have risen by between 1% and 1.5%. Why such disparate changes?
Keen for the best rate and some cash too?
We've teamed up with award winning mortgage experts, Squirrel.
With over 1,425 five star reviews on Shopper Approved, Squirrel has helped thousands of Kiwis just like you secure the best possible rate when refixing or refinancing. Squirrel often beats the advertised rates so it's worth getting them to review your mortgage.
Ryan
New Zealand
The service I got from Squirrel was extremely efficient. They dealt with my loan so easily and achieved a result greater than what I was expecting.
Jo
New Zealand
Highly recommend Squirrel to sort out a mortgage with the banks takes the hassle out of going to separate banks with so much information they do the hard yards for you - Baz was a superstar and helped me all the way to my new home.