With the OCR increasing last week and the quick reaction of the Banks to follow suit, consumers are wondering what their next move may be in regards to their existing mortgage structure or new home buyers looking for the best deal.
Over recent times the floating interest rate has been popular and it was the Revenue Bank focus to have a higher percentage of housing loans on the floating rate.
It looks like the tide has changed therefore you as the consumer are subjected to higher interest rates off the back of a growing economy which most of us struggle to see.
On top of the re-fixing dilemma you have the Banks offering thousands of dollars as sweeteners to refinance and to move.
So who wins out of this, if you move to another lender?
Is it a short term win or long term win or somewhere in between?
Is it a win at all?
What happens to this new Bank relationship when the inducement are only a distant memory and your new lender has become “just the Bank?”
The answers to most if not all of the above questions is only time will tell.
Before you make those big decisions off a $3ooo Lenders gift and a percentage discount for a period of time give dm consult a call so we can as a third party have a look at the options objectively and make recommendation based on your real needs. If that means negotiating a more competitive interest rate with your incumbent lender, or assisting with the refinancing of your loan to another lender or even recommending a lender we don’t have a relationship with then that’s what an advisor will do for you the client.
“What’s best for you is our priority”