Name: Should I wait for interest rates to get cheaper or accept the current rates? | Videos | Gan Jing World
Uploaded: 2019-06-05T04:00:00.000Z
Duration: 57 s
Description: If you've got interest rates due to refix but you think the interest rates are going down later in the year, is it better to stay on floating and wait? Or fix ... | Videos | Gan Jing World

The Mortgage Lab

https://video5-us-east.cloudokyo.cloud/video/v5/5d/01/50/5d0150c6-e404-4b59-8cdd-583cc51ca619/master.m3u8

If you've got interest rates due to refix but you think the interest rates are going down later in the year, is it better to stay on floating and wait?  Or fix now and know what you're going to get?

If you’d like The Mortgage Lab to negotiate your interest rate for you - at no cost - just get in touch with one of your friendly Mortgage Lab mortgage brokers at: mortgagelab.co.nz/contact-2/

Script for video:
G'day, everyone.  

I’m thinking about interest rates today, and we’re still seeing 3.85% and 3.89% interest rates for even up to three years, but the question I get asked all the time is, “Should you wait on floating if you think the interest rates are going down?”

Now it’s possible that it may go down, maybe 0.20% - 0.25% but in the meantime while you are are floating, you’re gonna be paying 1% - 1.2% higher than you would be if you’d fix it today.

So, the answer is, if you expect those interest rates to drop in the next month or two, then you could consider waiting but otherwise, you’re just paying too much for premium to wait around in there hope that the interest rates will drop.

So food for thought. It’s definitely horses for courses, but if you’re coming off (fixed) then maybe think about fixing again immediately and just seeing what it’s like in the next year or so.