PHOTO: Mortgages
OPINION: It’s a good time to take a look at the cost of your funding.
Over the past year, Kiwis have seen interest rates drop like a rock. Then Reserve Bank cut the official cash rate to 0.25 per cent – of which almost all has been passed to homeowners.
You might be wondering whether it’s worth breaking the term of your current fixed home loans to take advantage of these new, lower offers.
If you have lending of, say, $670,000 fixed at 5.25 per cent until February 3, 2021, you have another 317 days in that contract.
This lending will likely be costing you around $4015 per month. But if you broke it you could get a 12-month rate of 3.05 per cent (ANZ) which will make your repayments $3195 per month.
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