Same answer, different reasons
Let me tell you something that sounds obvious but that most people miss when it comes to their mortgage: it’s not the decision that matters most — it’s the thinking behind it.
I talk to clients all the time who’ve heard that a friend fixed for two years and figure that must be the right call for them too. Maybe it is. But probably for completely different reasons. A couple fixing for two years because one of them is going on parental leave and they need certainty in their budget?
Should you chase that cashback offer?
There’s a saying that I’m sure most of you are familiar with: If it sounds too good to be true, it probably is.
This saying was brought home to me the other day when one of my clients rang me in a bit of a bind. They had been in the middle of a combined three-year fixed and floating mortgage, which we had fixed up for them.
The dead cat bounce: Why interest rates are done falling
Right, let’s cut to the chase and talk about what happened to interest rates at the end of last year, because I know a lot of people are confused, and understandably so.
Here’s a recap: For about eighteen months, we watched the OCR fall and interest rates followed suit, pretty much point for point. It was predictable. Comforting, even, if you were refinancing. Then December rolled around, and something weird happened.
“Interest rates have been dropping for months now. So why doesn’t it feel like there’s more money in my pocket?”
Fair question. And honestly, it deserves a proper answer. Let’s start with the facts. Interest rates have fallen substantially, with the Reserve Bank cutting the OCR on multiple occasions throughout 2024 and into 2025. We’re talking about a massive reduction from the peaks we saw in 2023. That’s significant.
Should I lock in now or wait? Why splitting your mortgage beats crystal ball gazing
I seem to have had a lot of calls like this recently. “Cam, my fixed rate’s coming up for renewal and I’m not sure whether to lock in now or wait for rates to drop further. What would you do?”
It’s a fair question, and I get why people are asking it. We’ve just come through twelve months where interest rates have fallen by a full 2.5%, so naturally, everyone’s wondering if they’re about to miss out on even better rates just around the corner. The fear of locking in today only to see rates drop next month is real, and it’s keeping a lot of people awake at night.
Don’t just click and hope – why your refix decision deserves more than five minutes
I’ll be straight with you – the banks love it when you refix online. It’s quick, it’s efficient for them, and frankly, it saves them money.
But the vast majority of people who come to see me want to have a proper conversation before they make their refix decision, not after they’ve already locked themselves in.
Refixing your mortgage – there’s more flexibility than you think
Refixing in a reducing interest rate environment sounds boring as hell, doesn’t it?
But stick with me, because this could save you a lot of stress and potentially thousands of dollars over the life of your mortgage.
We have countless conversations with clients about what to do when their fixed rate expires. Especially now, when interest rates have dropped. And I find myself encouraging virtually everyone to keep their payments at the same level they’ve been making, even though the new rate might be lower.
The two-year fix might be your sweet spot
There’s been plenty of chatter about interest rates lately (just for a change!), with predictions flying around about what will happen next. But we’re starting to see a return to what I’d call ‘normal’ in the mortgage market. And by normal, I mean how things worked before Covid turned everything on its head.
Latest Update: The glimmer of (interest rate) light at the end of the tunnel
If one topic has dominated my conversations with clients in the last few months, it’s interest rates. I know I’ve written about this before and am…
Latest update: Still waiting…
The other day, I was having coffee with a client when the conversation turned to interest rates, which isn’t unusual in my line of work. They looked…