As Kiwis struggle with the rising cost of living, higher interest rates and recent weather events that caused significant damage to homes in certain regions, many more homeowners and first home buyers are turning to mortgage advisers for financial advice. With fixed rate mortgages at a record high, and close to half of those due to expire in 2023, there’s never been a better time to talk to a mortgage adviser about refixing or refinancing options to fit the budget.

Earlier this month, the RBNZ increased the Official Cash Rate (OCR) by 50 basis points, from 4.75 per cent to 5.25 per cent. It’s the 11th successive increase and takes the OCR to its highest level since December 2008. As some New Zealand mortgage holders prepare to re-fix their mortgage in the next 6 months, many are likely to see their interest rates double from 3 per cent or less to more than 6 per cent. Before locking in new interest rates, it’s important for borrowers to know these 5 things.

With a high number of houses listed for sale at the end of 2022 according to data released by REINZ*, the New Zealand property market currently favours buyers in certain regions, with properties taking longer to sell and house prices trending downwards. A buyers’ market gives buyers more time to negotiate and to complete their due diligence, and for sellers, to carefully plan a realistic sales strategy and to align expectations on price. If you’re selling property in a buyer’s market, here are some things to consider.

Mortgage interest rates are expected to keep rising while inflation remains high, leaving many New Zealand homeowners concerned about the impact that increased mortgage repayments will have on their budget. While some may be facing real financial pressure, for others it’s likely a case of riding out the tough times, plugging away at the mortgage, and looking at ways to reduce household spending. Here are some thoughts on what to do about rising mortgage interest rates.

Listen to a thought provoking podcast from Radio New Zealand about the aspects of the current New Zealand housing market. Mortgage rates, floating and fixed rates, house price growth, implications for homeowners and whether the government could step in are all included in this interesting discussion.

With global uncertainty and high inflation rising, consider spreading your home loan over various loan terms to mitigate financial risk.

Three things you need to know when budgeting for your first home

What you need to know for the bank if you’re preparing to buy a house in New Zealand - Jenny Cheevers Mortgage Advisor