http://www.mortgagerates.co.nz/blog/sweet-comfort-for-now/ Find the best mortgage rates online Thu, 10 Sep 2009 22:17:14 +0000 hourly 1 http://wordpress.org/?v=3.0.1 http://www.mortgagerates.co.nz/blog/sweet-comfort-for-now/comment-page-1/#comment-149 Ian Webb Thu, 10 Sep 2009 22:17:14 +0000 http://www.mortgagerates.co.nz/blog/?p=62#comment-149 The situation homeowners are in now is tenuous if they have not already fixed longer term. Banks have made short term and floating rates appealing so as to entice homeowners short. As the OCR rises in the future, these homeowners will have no safe haven. The rule around interest rates goes against the grain for many, but is important..."at the top of the interest rate cycle, stay short term (so they have take advantage of lower rates without huge break penalties), and go as long as you can afford to at the bottom of the cycle". Banks are very clever in making the lowest rates that appeal to homeowners, but the worst rate to be taking, both at the top of the cycle and at the bottom. Where is the commentary that helps homeowners figure out that banks are playing their own game for their own gain. The situation homeowners are in now is tenuous if they have not already fixed longer term. Banks have made short term and floating rates appealing so as to entice homeowners short.
As the OCR rises in the future, these homeowners will have no safe haven.
The rule around interest rates goes against the grain for many, but is important…”at the top of the interest rate cycle, stay short term (so they have take advantage of lower rates without huge break penalties), and go as long as you can afford to at the bottom of the cycle”.
Banks are very clever in making the lowest rates that appeal to homeowners, but the worst rate to be taking, both at the top of the cycle and at the bottom. Where is the commentary that helps homeowners figure out that banks are playing their own game for their own gain.

]]>