Last weeks election result was a windfall for borrowers.
The incumbent National government being able to govern alone or, at worst, with parties just grateful to still be there, is a result New Zealand mortgage holders could only dream of.
Any result that had a cobbled together coalition of the Left would have undoubtedly lead to out of control spending to try and placate all of the various political agendas.
The result would have been to stoke the fires of inflation and push interest rates higher and faster.
All the bluster from many on the left that they would step in and control interest rates by whatever means was just that, bluster.
Whatever your political persuasion, there is no doubt that the current government is a conservative manager of the country’s finances and without any minor players to have to assuage it should continue to run a steady and some would say boring ship.
The result is we can look to standard economic fundamentals to try and predict the future direction of interest rates.
It is already accepted by most that we won’t be seeing any more OCR increases this year and with a continuing strong dollar, weakening commodity prices and no sign of any significant interest rate increases from major trading partners I believe we could be waiting a little while into the New Year before we do.
Current Mortgage Rates
The best rates on offer at present are:
Please note these are carded rates and we can normally negotiate better for clients.
Floating 5.90%
6 Months 5.80%
12 Months 5.85%
24 Months 5.99%
36 Months 6.19%
48 Months 6.75%
60 Months 6.79%
These rates are indicative only and should not be relied on in any transaction
The incumbent National government being able to govern alone or, at worst, with parties just grateful to still be there, is a result New Zealand mortgage holders could only dream of.
Any result that had a cobbled together coalition of the Left would have undoubtedly lead to out of control spending to try and placate all of the various political agendas.
The result would have been to stoke the fires of inflation and push interest rates higher and faster.
All the bluster from many on the left that they would step in and control interest rates by whatever means was just that, bluster.
Whatever your political persuasion, there is no doubt that the current government is a conservative manager of the country’s finances and without any minor players to have to assuage it should continue to run a steady and some would say boring ship.
The result is we can look to standard economic fundamentals to try and predict the future direction of interest rates.
It is already accepted by most that we won’t be seeing any more OCR increases this year and with a continuing strong dollar, weakening commodity prices and no sign of any significant interest rate increases from major trading partners I believe we could be waiting a little while into the New Year before we do.
Current Mortgage Rates
The best rates on offer at present are:
Please note these are carded rates and we can normally negotiate better for clients.
Floating 5.90%
6 Months 5.80%
12 Months 5.85%
24 Months 5.99%
36 Months 6.19%
48 Months 6.75%
60 Months 6.79%
These rates are indicative only and should not be relied on in any transaction
