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Are you ready for mortgage rate up?
The main target of OCR movement is to control inflation. If the current inflation pressures continue, the OCR will go higher to 3% by the end of the year. If you are now sitting on a floating rate mortgage, or fixed rate rollover within the next 60 days, or simply with a " wait and see" attitude, you can lock your rates now while they are still lower than where they are projected.
The following are some of the tips to help with your mortgage.
Fix a floating rate to a fixed rate.
- Every rate increase raises the cost of waiting
- Move to a fixed rate before further rate increases
- Go ahead to protect your monthly budget by planning earlier
- There is still time to act, but the window won't stay open indefinitely
Early rate lock for fixed rate rollover
- You may not know that you have 60 days ahead to lock your rates before rate renewal date.
- There is no need to wait until the last moment for the rate renewal
- You secure a new rate 60 day earlier
- Your online banking can tell you when the next fix is due if you do not know the date
- Your lender may send you email reminders of the rate rollover 60 days beforehand
- Your can contact your mortgage broker for advice
Lenders are offering 1% cashback to help with the cost
- If you are buying new property
- If you are refinancing your mortgage
- If you are applying for a top-up
- Check with your mortgage broker for the terms and conditions
If you are buying properties, you have the following opportunities:
- House prices have fallen slightly over the past year, offering buying opportunities
- New listings keep the market well supplied, giving buyer negotiating choices
- Inventories of property for sale continue go up, creating more balanced competition
- A stable property market gives buyer chances to make informed decisions
Is a refinance right to you?
- There is no one-size-fits-all answer
- We will give you a free, no-obligation refinance review
- Contact us for a chat
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Patrick Wang
