OCR Down: War on Banks Heats Up
Thu Aug. 15th 2019
It's a fantastic time to restructure your mortgage! With the Reserve Bank reducing the official cash rate to its lowest-ever rate of 1%, banks have paid attention and cut mortgage interest rates.
It's a fantastic time to restructure your mortgage: The Reserve Bank has reduced the official cash rate to its lowest-ever rate of 1%. The banks have paid attention and cut mortgage interest rates, with two- and three-year fixed term rates below 4%. Floating rates are also down, which is good news for borrowers.
If you're coming off a fixed rate, take the time to shop around. You can potentially secure a respectable chunk of cash, you may be able to get your fees covered to switch banks and get a sub-4% rate.
Still fixed? It might be time to run the numbers on whether breaking your term makes sense.
We recently had a client with only 10 weeks to go on her loan, and she didn't think it was worth breaking the fixed term. We spoke to the bank for her and did the sums, and it was only about $350 to break the term. That money was recouped after just five weeks, so it was well worth the effort.
Contact us for a no-obligation review of your mortgage - we will contact your bank, obtain your break-fee, and calculate if the savings from a lower rate outweigh the cost of breaking your fixed rate term.
Need our help?
We're here to answer your questions.
Get in touch with us todayservice@cavefinancial.co.nz
09 302 7310
1D Roberta Avenue
Glendowie
Auckland 1071
New Zealand
Latest articles

New guidelines on the real cost of retirement have been recently released by Massey University
The 2021 Retirement Expenditure Guidelines provide information about actual levels of expenditure by New Zealanders who have retired. Pre-retirees can use this information to prepare for retirement, plan budgets for their desired future retirement lifestyle and provide a foundation from which to determine the amount of money and savings they need to achieve their retirement goals.

Why getting the right mortgage structure is key
We are starting to see rates increase on a weekly basis, so now really is the time to be reviewing your mortgage - it's not all about getting the lowest rate possible, but the more they continue to go up, the harder it is going to be to pay that loan down!

Creating a healthier life that works
Food provides us with the energy we need to live. What food we choose will help us live Healthier, Longer, Better Lives.