Right borrowing strategy can ease burden for homeowners
Monday 13 September 2004
Floating mortgage rates could hit 9 per cent by the end of this year, but the right borrowing strategy can help ease the burden for homeowners.
By The Landlord
Homeowners could have saved a tidy packet if they had chosen a fixed-interest-rate mortgage strategy in the past five years, according to Bank of New Zealand chief economist Tony Alexander.About two-thirds of all mortgages are on fixed rates and that is likely to increase during the next year as floating rates continue to climb, Mr Alexander says.
This week, the Reserve Bank increased official interest rates by a quarter of a percentage point to 6.25 per cent and the bank's governor, Alan Bollard, said a further rise was likely this year.
A borrower who took out a two-year fixed-term loan in January 1999 and renewed it every two years with a similar term would have saved between 0.1 per cent and 0.5 per cent against the average floating rate over the same period, Mr Alexander said.
Read More - Opens in a new window
Commenting is closed
Property News
Return to market form
There’s been a rallying of the market with the latest REINZ data showing both sales volumes and median house prices noticeably up with the onset of Spring.
House Prices
No stopping Capital price rises
There’s no sign of a slow-down in Wellington’s property prices with Trade Me Property’s latest data showing that asking prices continue to rise solidly.
Commercial
NZ proptech start-up scores major investor
Auckland-based commercial property disrupter, Jasper, has raised $2.3 million in seed funding following investment from European asset manager M7 Real Estate.
