Next week many economists are predicting our biggest ever rate cut. The NZ Reserve Bank has never cut interest rates by more than 50 basis points before, so expect this record to be broken.
Kiwis love to try and second guess future interest rates, especially when they are about to renew their home loan. Typically they have to decide between the 3 most popular products…..a term loan, a fixed loan or a revolving facility. Here’s the last few years of changes courtesy of the Reserve Bank >>
For more detail on this highly possible large interest rate reduction visit here >>
According to the latest Wizard Home Loans Affordability report Home Loan affordability is at its best in 2 years.
….and the good news continues…..
Government guarantees all deposits for next 2 years for banks, building societies and finance companies. Great news but met with the usual pluses and minuses. One camp argues that we have a very robust and sound banking system here in NZ, one where we didn’t go crazy with Lo-Doc loans, 110% mortgages and further excesses in the “sub-prime” market. The other camp argues just as interestingly that if this is the case then the Government should do as it has done, because as the system is so sound the Government has nothing to worry about anyway…so why not. The positive outcome is that Kiwis can continue to have confidence in our banking and associated finance company sector.