In the last couple of years, interest rates have crept up and up. In fact, many people’s mortgage rates have doubled since 2021. We know the OCR has climbed, but is that the whole reason for skyrocketing interest rates? With banks still recording record profits, you might be wondering where the extra money you are now paying for your mortgage actually goes. Let’s take a look at the answer to where your money goes when interest rates rise.   Where Does My Money Go? When interest rates rise, does the bank just pocket the extra money that you are paying? The answer to that question is no ..read more

2023 closed with the promise of interest rate relief hanging in the air. The inflation numbers were going in the right direction and all the predictions were for the OCR to drop at some point in 2024, and interest rates with it. Now, we sit on the eve of the first OCR decision of the year and we are being warned it could go up. How did we get here and when will we see the relief we have been promised? Let’s explore. Why So Volatile? The Reserve Bank has been very clear on its stance that they do not expect the OCR to drop until late 2025. Up until a few weeks ago, most economists were predi ..read more

New year, new interest rates? That’s what most mortgage holders are hoping for anyway! But, will it actually happen? Let’s take a look at what’s been happening in the world of finance and property over summer and what the economists think will happen to interest rates in 2024 – the 12 months ahead. Inflation On 24 January, the new inflation figures were released. Currently, inflation is sitting at 4.7%. This is down from a peak of 7.3% in June 2022, but still outside the Reserve Bank’s targeted window of 1-3%. However, they had forecasted an inflation rate of 5% for this quarter, so there i ..read more

It is almost that time of year again. Sleigh bells will be ringing, the weather is warming (hopefully), and you’ll be shopping up a storm for pressies and ingredients for the family Christmas meal. But, this Christmas might feel a little different to previous ones. Especially if you’ve just refixed your mortgage at a much higher interest rate. So, we’ve been busy making a list of all the nice things you can do to save some money these holidays so that you can avoid Santa’s naughty finance list! 10 Holiday Season Money Saving Tips 1: Set A Budget It is super easy to overspend at Christmastime ..read more

As we all watch mortgage rates climb higher still, you’d be forgiven for trying to find ways to save some money each month. There is only so far budgeting and cutting out luxuries will get you. Sometimes, you might feel like a more drastic saving plan is needed. Part of that exploration might include looking for ways you can save on your mortgage. Recently, we’ve had some queries about interest only loans so thought we’d provide greater detail about what they are along with some ways you might be able to save money on your mortgage.   What Is An Interest Only Loan? Well, kind of like t ..read more

It’s common knowledge that inflation has been too high for too long in NZ. And we’ve heard all the experts telling us that it’s a really bad thing. But, why is that? How does inflation have a vice-like grip on our economy right now and why has it not gone down despite interest rates sky rocketing and households feeling the pinch? Well, let’s look at that question now and explore how tricky the job of reducing inflation seems to be.   Why Is It Bad To Have High Inflation? In New Zealand, the target inflation rate is between 1 – 3%. As of October 2023, the current inflation rate is sitti ..read more

Why Do Mortgage Rates Keep Going Up? If you’ve been keeping on top of the announcements by the Reserve Bank, you’ll know that the Official Cash Rate (OCR) has remained at 5.5% since 24th May 2023. And as we’ve previously learned, the OCR is a large player in dictating how interest rates will be set. So, if the cash rate hasn’t moved since May, why do mortgage rates keep increasing? Well, a lot of it is down to the cost of doing business. BNZ has quoted, “The cost of funding, which is predominantly determined by the rates banks can borrow overseas, has been increasing and this increase is bei ..read more

We have heard an awful lot about inflation in the last few months. But what exactly is it and why is it having such a big impact on mortgage rates? We’ll explore that questions and what’s been happening in the world of finances now… What Is Inflation? We’ve all heard the word inflation before, and know that it can have a big impact on the general economy. But, what is inflation actually? Well, inflation refers to the general increase in the prices of goods and services within an economy over a period of time. When inflation rises, each unit of currency buys fewer goods and services than it ..read more

It’s no secret that times are tough right now. Most families are really feeling the pinch with living costs dramatically rising in the last year. And, don’t get us started on the interest rates! In tough times, it is important to lean on the knowledge of experts. Right now, a mortgage advisor is one of the best experts you can engage. Why is that? Read on to find out the answer and to see what is currently going on in the world of finance. The Value Of A Mortgage Adviser In Hard Times When the economy feels like it is in freefall, interest rates are up, and a lettuce costs more than $6 at t ..read more

For the last few years, there has been a lot of talk about fixed mortgage rates. First, they were super low. Now, they are peaking at rates that are unsustainable for some households. So, let’s explore fixed mortgage rates in greater detail. What are they, why should you choose them, and when should you use them? You’ll find the answers to all those questions in this article, along with a quick update on what is happening in the financial markets mid-2023. What Are Fixed Mortgage Rates? A fixed mortgage rate refers to a mortgage loan where the interest rate remains fixed or locked in for a ..read more