The Reserve Bank announced a 0,5% cut in the official cash rate – now sitting at a record low of 1%. Banks reacted promptly by announcing that they’ll follow by adjusting their mortgage rates too.
This is good news to would-be home buyers as low interest rates make it rather attractive to rather get into their own home than renting. There are some sharp rates out there – BNZ offers 3.75% for two years fixed.
The flip side of the coin is not so great for savers’ interest return on savings and deposits. The already low rates on term deposits might entice investors to diversify as the return on investment after tax deductions does not stack up well and can only worsen.
The latest adjustment is to stimulate consumer spending. Spend wisely by investing in your own home and enjoy the fruits of your labour in years to come.
Feel free to contact Linda Dobson on 022 64 50588 for a confidential real estate chat.