OCR on hold...
Once again the Reserve Bank Governor announces the Official Cash Rate is on hold for now, pushing out the timing of future rate hikes saying uncertainty in financial markets could force up funding costs for local lenders and is threatening to hinder New Zealand's recovery.
Earlier this year, Bollard indicated he was keen to remove the extra stimulus he added in response to the February earthquake, though that was put on hold as financial markets tumbled after the United States credit rating was downgraded and the Euro struggled with the high level of debt among some of its members.
Since the last monetary policy statement in September, NZ's sovereign credit rating has been downgraded by Standard & Poor's and Fitch Ratings due to the size of the country's external debt, though the Reserve Bank are expecting household savings to improve as people use the record low interest rate to repay debt and improve their personal balance sheets...
This is something that Mortgage People fully supports and as expected we are already working with many clients to better structure their debt and provide options on better debt management - now really is the time to take advantage of the low interest rates!
What you can control?
We can't control the globally uncertainty, but we can control our own financial situation and give ourselves financial certainty!
- How well do you know your budget - what you get, what you spend, what you could save?
- Is your mortgage structured to suit you or your lender?
- What term is your mortgage on?
- How old will you be when your mortgage is repaid?
Did you know:
At a rate of 5.75%, for an extra $250 per month per $100,000 borrowed you could HALVE your mortgage term. True.
This is something that you can most definitely control, with a little advice and guidance from Mortgage People.
Call us today to arrange your one on one meeting >>> freephone 0800 823 823
or Email us now and we'll be touch soon.