Monday 25th July 2011
|Text too small?|
Crunch time may be fast approaching for people with floating mortgage interest rates wondering whether to switch to fixed rates.
BNZ chief economist Tony Alexander said people had been holding off fixing to maximise the time paying the lowest floating rates in four decades.
Now, for all but the most risk-loving of borrowers, the balance had shifted in favour of making the jump sooner rather than later, given recent higher than expected inflation and growth data, along with rising wholesale borrowing costs.
Personally, if he were a borrower, he would be inclined to fix a portion of his mortgage in either the two or three year area, Alexander said.
That comment took account of BNZ's latest forecast for when the Reserve Bank will start raising the official cash rate. BNZ said it now expects rises of 0.25 percent in September, October and December.
No comments yet
28th October 2021 Morning Report
Wellington Drive Technologies Limited (NZX: WDT) Performs Strongly in Q3-2021
Ryman Healthcare Limited (NZX: RYM) Acquires Extensions to Two Existing Victorian Sites
Promisia Healthcare Limited (NZX: PHL) Banking Covenant Update
Pictor Limited Announces Start of US Clinical Trials for SARS-CoV-2 Serology Test
Arvida Group Limited (NZX: ARV) Opening of Rights Offer
Move Logistics Group Limited (NZX: MOV) Announces $40m Capital Raise
27th October 2021 Morning Report
The a2 Milk Company Limited (NZX: ATM) Investor Day 2021
Contact Energy Limited (NZX: CEN) Considers Green Capital Bond Offer