Probably not the right board to post this on but here goes. I am hopeless with following current trends in the financial market and my fixed term is due to end soon. Do I fix it again at current low rate 4.89% or is it likely that the rate will drop more if I wait.
jmma,
Jul 19, 4:24am
Real estate, may be a better option for this (o:
kateley,
Jul 19, 5:02am
going from my long years of experience - as soon as you fix it (at whatever the best rate is) then the bank will almost instantly reduce it further. On the other hand, if you leave it floating then the opposite will occur
captaingraham,
Jul 19, 5:27am
Murphy's law
onyx-1,
Jul 19, 5:43am
id fix at that rate, how long is the term being offered? The lowest I could fix mine a few months ago was 5.39%. and then interests rates dropped. good ol murphy!
tsjcf,
Jul 19, 5:58am
should be two more cuts in the OCR so rates should go lower but anything under 5% is good
maclad,
Jul 19, 6:21am
12 month term, food for thought, thanks
budgel,
Jul 19, 6:33am
When I had a mortgage I preferred to fix it because I could budget around what was a known figure. Work out what you would save over 12 months if you went for floating and the interest rate remained the same, then figure if it is worth the risk of an increase. If you are paying less than 5% on fixed, a floating rate probably wouldnt be a whole percent cheaper, so it comes down to how big your mortgage is as to whether the amounts involved are worth going for.
mojo49,
Jul 19, 9:40am
4.89% is a very good rate. Fixing for say 2 years now gives you certainty while floating has a greater risk factor to it. Yes with the weakness showing up in the economy rates could fall further for the next year to 18 months. So many factors influence the Reserve Bank's thinking around interest rates that very few experts get their 1-2 year forecasts right. It is more about your appetite for risk. For certainty fix now for 2 years. if you can afford to take a punt look for the best floating. Floating will have to drop well over 1% to make it worth holding off against a 4.89% (2year) deal now. I am about to refix some big loans for 2 years at 4.89% because that rate is affordable, cheap and certain.
spiritofgonzo,
Jul 19, 6:33pm
The experts predict another drop by xmas . but I still fixed 3 yrs st 5% because im happy with that. It's always a gamble, no one 'knows'.
dibble35,
Jul 19, 7:21pm
Not even the so called experts. My mortgage broker told me to fix my whole mortgage at 6.2% just over a year ago. when I wanted to float most of it, now every time I see these cheaper rates advertised I get a bit annoyed with her. Luckily its not a massive mortgage!
golfdiver,
Jul 19, 9:30pm
Anything under 10% is great for those of us with long memories
spiritofgonzo,
Jul 19, 10:43pm
exactly!
mybooks,
Jul 20, 4:15am
I agree. bought a lifestyle block in September '83, by Christmas that year the interest rate was 23% - no, not a typo - twenty-three per-cent. We became watermelon and sweetcorn growers, completely new to us. selling vast quantities of those at the gate, plus working, got us through the time of those high rates.
May that never happen again.
cas82,
Jul 20, 4:27am
FLOAT float float, all I got too say.
maclad,
Jul 20, 5:43am
We got caught in this, nearly crippled us, but we hung in there till things got better and managed to keep our home. Was not a nice time, very stressful and we kept a close eye on our budget and tightened all the strings.
mtbotrev,
Jul 20, 8:39am
We fixed in December for 2 years. would have been better to have floated but we know what we have. Given a choice I would float as above. seemingly more cuts to come.
210sback,
Jul 20, 9:03am
you get annoyed at her lol.you mean you get annoyed at yourself don't you?you made the decision to fix,don't blame others for your mistakes!
maccachic1,
Jul 21, 12:00am
I fixed a while back 5 year's at 4.99%. I've heard of 2 year rates at 4.6% and predictions seem to be low 4s which would be impressive. Highest Ive been stuck at (under a broker - I know educate and find deals for myself) was 9.2% so still have with my 5 year rate for now.
dibble35,
Jul 21, 7:44am
I followed her advice thinking she was the expert. why should I be annoyed with myself. all I did was follow her advice, as I said not a huge mortgage so no biggy, ill just take care of it myself from now on
210sback,
Jul 21, 8:05am
good thinking.
maibuy,
Nov 17, 4:50pm
I've always had a split mortgage. 40% floating 6 months, 60% fixed 18-24 months. Less scarey if rates shoot up, plus i can anticipate to budget once the fixed rate finishes. May help if you're unsure.
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