Refinancing should we lock in for 12months or float and see what's happens in the next couple of months.opinions please.

redsparkles2 - 2020-12-14 15:00:00

redsparkles2 wrote:

Refinancin-
g should we lock in for 12months or float and see what's happens in the next couple of months.opinions please.

One for Jeff.

I suggest that it depends on your individual circumstances. Any answer though is likely to be an educated guess tailored as above.

johnston - 2020-12-14 15:14:00

Thank you! Most people are fixing for 12 or 24 months at present, 12 means you can review and change if rates go down. There was, until a week ago, a strong wind of downward change, now not quite so strong. Bit of a moving feast. Each application is different as is appetite for risk. hope that helps!

jeffqv - 2020-12-14 16:16:00

jeffqv wrote:

Thank you! Most people are fixing for 12 or 24 months at present, 12 means you can review and change if rates go down. There was, until a week ago, a strong wind of downward change, now not quite so strong. Bit of a moving feast. Each application is different as is appetite for risk. hope that helps![/quot

Many thanks Jeff. .I wouldn't be opposed at locking in for longer but hubbies not keen.

redsparkles2 - 2020-12-14 16:38:00

Depending on how big the mortgage is , lock in some of each

toyboy3 - 2020-12-14 16:52:00

There's a good article from Tony Alexander about this:

https://mortgagerates.co.nz/news/have-we-all-been-wrong-abou
t-interest-rates-remaining-low

The TL:DR is that interest rates may not go much lower - the general economy is actually responding well post COVID, which *might* cause inflation to rise greater than planned, in which case interest rates could rise medium term.

sparkychap - 2020-12-14 17:00:00

It always goes down a tad after I lock in lol. But mine is not huge (but it is to me) and I hope to have it just about gone my the time I start getting Super.

joanie04 - 2020-12-14 21:21:00

6mths ago I locked in the majority ($590ish) at 3.05% for 18mths and floated 50-60k.
Now paid off the floated.
So will have to sit on my hands for a year.

Argh, nope.
Went and bought another for $300k and will lock $250 at the lowest rate and float $50

smallwoods - 2020-12-14 22:38:00

We refix the majority of our smallish mortgage every year for 12 months at the best rate available at the time so have certaintity of repayments but we also leave an amount floating which we plan to pay off completely during that 12 months. This works for us.

jonnythecat - 2020-12-15 08:23:00