Over the last few years, interest rates have dropped dramatically. They’re now around a quarter of what they were a decade ago, and half of what they were just a few years ago. The Reserve Bank’s lowering of rates has got some economists and commentators talking; could it be time for a rate rise soon and how will it affect your mortgage repayments? Or will global conditions mean they have to keep pushing the interest rate down?
Nobody knows exactly when (or even if) the Reserve Bank will raise interest rates again. The good news, however, is that you’ve got a choice that allows you to hedge your bets. Whether you’re establishing a new mortgage or switching from an old provider, you’ve got an opportunity to choose between stability and predictability, and the potential for savings.