How long should I refix for right now?

How long should I refix for right now?

To Fix or not to Fix that is the question. On everyone's mind in NZ right now, is whether to fix your Home Loan for a short or a longer term. As always, there are a million different points of view out there! Here's an easy take on the current situation to help you make up your mind.

5 things you need to know before your refix

1 - Nobody knows what is going to happen with rates, it’s always an educated guess, even by the “experts”!

2 - You can’t make a bad decision, remember, you’re making the best guess at the time with the information you have available to you

3 - What to look out for?  How is inflation tracking?  This has a large affect on what the Reserve Bank of New Zealand will do, as its #1 mandate is to keep inflation between 1-3%.  

If inflation is under control, & the economy is struggling, rates will go down (like they are right now!).  

If inflation is high & the economy is going well, then they will raise rates to help bring it back down again, like what happened after COVID.  There are many factors that influence these factors.

4 - Remember we are a small nation affected by many outside influences that are completely outside of our control.

A great saying, “if the USA sneezes, the world catches a cold”, why is that? Simply put, they are the biggest, wealthiest nation on the planet, and NZ is tied to them in many ways-trade, money markets etc.

Our longer-term mortgage rates are impacted by what happens in the US, as this is where our banks borrow their money from to lend to us.

5 - So should you fix in short or long term right now?  

Talk to your Mortgage Adviser BEFORE you make you move.  Its a free service.  
Because, what's right for your neighbour, or Uncle Bob, won’t necessarily be right for you & your circumstances. Our job is help you understand all you options so you can make the best decision for you.