Soaring inflation raises mortgage rate risks
For quite a few months now my central theme with regard to interest rates has been fairly clear. Inflation risks are rising, the R...
Interest rates on an upward march
The long-awaited monetary policy tightening cycle has now kicked off in New Zealand as the need for record low interest rates to c...
How the OCR could double monthly mortgage interest payments
If the official cash rate gets raised from 0.25% to 2.25%, we can anticipate that the one-year fixed rate to go from the current 2.19% to probably close to 4.5% when we allow for banks recovering some of their currently very low lending margins.
Rising global inflation risks
History tells us that ahead of the 2008-09 Global Financial Crisis we economists under-predicted how high interest rates would need to go each cycle. But post-GFC we over-predicted rate rises. Now, we don’t know in what direction our errors will lie.
Why you might be better to break your home loan early
Typically you refix your loan at the end of your loan term, but it can make sense to break a loan and refix for a long term benefit.
Mortgage interest rates are set to rise
In New Zealand the current general expectation is that this removal of the sugar bowl will commence in the second half of next year. One or two forecasters are suggesting the first half.