"Let's get on with it" has been the sentiment from lots of people I've talked to in the last couple of weeks.  With the election result we have stability with interest rates and lending policy and now that spring is well and truly here we're starting to see more properties on the market and more selling.

The good news is that interest rates are holding steady and the Reserve Bank has indicated that we are unlikely to see a rise in the Official Cash Rate until the second quarter of 2015.

This has led to us being able to secure some great discounts on interest rates.  The banks can see that their cost of borrowing over the next six months is not going to be as high as they thought, so although they are not reducing interest rates, they are offering better discounts.

We still think that the trend over the next 24 months will be for an increase in interest rates of up to 1% so are recommending that most people fix long term.

My belief is that you're always better to set a loan structure that fits your personal situation, rather than just trying to predict what the interest rate market is going to do.  I've seen plenty of external factors (GFC, Chch Earthquake, high NZD) come out of nowhere and effect the predicted trend for interest rates, but if you've got a robust plan in place then you can limit the effect of these events.

In summary we're looking at some excellent interest rate discounts over the next few months but you need to make a plan with your borrowing and I can help you with that.

If you have a loan coming up for review or know of anyone wanting to discuss their home loan options then get in touch any time.

Regards

Adam Thompson
Mortgage Broker/Adviser
My Mortgage

Matamata, Cambridge, Te Awamutu, Hamilton, Auckland