Nigel Perkins, Director at Haven Mortgages shares how the increased OCR will likely impact borrowers.
Behind the Official Cash Rate
“The double-edged sword of containing inflation vs responding to one of NZ’s most significant natural disasters is a mighty balancing act to navigate.
How the Reserve Bank looks at a red stickered Muriwai Beach homeowner in the eye and says, “You’ll have to pay up to 0.5% more for that mortgage on your home that you can’t access” – that’s incredibly tough when you’ve already been forced to pay to rent elsewhere, all while your insurance claim is a murky proposition, at best.
The OCR is a blunt macroeconomic tool designed to control the flow of money.
Right now, the flow of money couldn’t be more polarising. The sheer brutality of this monetary policy change will be the final straw for many Kiwi families, just to try holding on tight to what they’ve got!
So, what does the increase in OCR mean for you?
How much will rates actually rise? At this stage, you can reasonably expect all floating rate loans to pop up very soon.
We’re not expecting too much movement, if any, around the 2 yrs plus fixed terms (ie 2 yrs – 5 yrs).
Likewise, expect a good slice of the 0.5% increase to be passed through to terms up to 18 months, soonish.
How can Haven help your home loan with an increased OCR?
At Haven, we’re fully committed to ensuring the best options are navigated for every client’s unique circumstances.
These include:
When it comes to navigating fixed rates and mortgage negotiation, time is the enemy. The quicker you jump onto reaching out for assistance, the better the likelihood of providing the best options for your circumstances.”
Get in touch with the team today if you’d like a chat to see how Haven can help!
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Where the Winner is required to claim the prize in person, they must provide proper identification (eg driver’s licence, passport, birth certificate).
The Winner takes the Prize entirely at his/her own risk and indemnifies Haven Financial Advisers in respect of any claim for any accident, injury, property damage or loss of life that may occur in connection with the prize. The Winner is responsible for all insurance, tax or other costs that may be associated with the Prize. Where the Prize has associated terms and conditions the Winner accepts the Prize subject to those terms and conditions and restrictions.
The Prize must be taken as stated and no compensation will be payable if the Winner is unable to use the Prize as stated.
The Promoter (Haven Financial Advisers Limited) will not be liable for any prize(s) that do not reach the winners for reasons beyond the Promoter’s reasonable control. Where a prize is being supplied by a third party, the Promoter accepts no responsibility in connection with the provision of the prize, including without limitation, the failure of the winner to receive ownership of, or use of, the prize or any performance issues associated with the prize.
The Promoter will not be liable for failure to provide (or delay in providing) the Prize resulting from any events, circumstances or causes beyond its reasonable control, including but not limited to acts of god (natural disasters), acts of war or terrorism, national emergencies, issues of public health and safety, pandemic, mechanical breakdown, industry disputes, riots or failure of communication or power supply or voluntary or involuntary compliance with any regulation, law or order of any government.
Prizes may be subject to additional terms and conditions imposed by a third party.
The Promoter will not be responsible for any loss or damage suffered by entrants or anyone else as a result of, arising out of, or in any way connected with the Promotion or its prizes.
The Promoter collects and holds personal information provided by entrants for the purposes of administering this Promotion and for future Promoter promotional purposes. All personal information provided by entrants will be held by the Promoter and will not be provided to third parties unless otherwise specifically set out. Under the Privacy Act 2020, entrants have the right to access and correct their personal information.
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