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Brendon’s Away, Graham Steps In! With Brendon currently hiking the Te Araroa Trail until February, Velocity Founder and Co-Director Graham is stepping in as our go-to voice on your fixed versus floating mortgage strategy over the next three months. His eagle-eyed view of the market makes him the perfect guide through this fixed vs floating moment while Brendon is enjoying his time off. Here is Graham's take on the mortgage news this month.
By Graham Goodisson
We’ve got a new Reserve Bank Governor, and with that comes fresh messaging about the future of interest rates. Spoiler alert: the next few years could look very different.
In my last blog, I mentioned how attractive some of the longer-term rates were looking. Turns out, I was right...but I also owe you an apology. Why? Because Westpac clearly follows Velocity Financial online and promptly bumped their 2- to 5-year rates by 0.3%. ASB has quietly done the same, not by announcing it, but by stealth, no more discounts on longer-term rates. It’s a bit like those “specials” at supermarkets and big electronics chains that aren’t really specials.
There’s no debate: we’re sitting at the bottom of the interest rate cycle. Knowing that and preparing for what’s next are two very different things.
- Put those savings to work. Lower mortgage payments free up cash. Talk to your adviser about how to make the most of it.
- Plan for the next five years. Buying, selling, renovating? Your adviser can help structure your mortgage to fit your goals.
- Have the big conversation. Over the break, sit down with your significant other (or yourself!) and map out what the next few years look like financially.
Honestly, every tip boils down to one thing: talk to your adviser. And if you don’t have one, now’s the time to find one.
- Short-term rates (two years and under) will likely stay low.
- Longer-term rates? They’ll bounce around, but the pressure is likely upward.
- As always, how long you fix for depends on what your world looks like.
Your brokers here at Velocity are happy to have these conversations with you, it’s what we do best! If you’d like tailored advice, Book a 15 -minute call with our team to find out how we can help you with your mortgage strategy.
“A good mortgage adviser doesn’t just help you get a loan. They help you build a strategy.”
Refixing over the holidays? Read our Home Loans Over the Holidays Guide here.
Want to know what to ask your adviser? Read our mortgage refix tips
Graham.
This article was written by Shona in conjunction with Graham and peer reviewed by our financial advisory team.
Graham Goodisson (FSP95428) is a Financial Adviser with Velocity Financial (FSP95466). No financial decision should be taken based on the information in this blog alone. Please see our disclosure statement on our website.
About Graham
Hi there, I’m Graham and I started Velocity Financial nearly 20 years ago. I had for many years been running youth development programmes for The Salvation Army and I liked the idea of continuing to help people thrive in other areas of their lives. It started with helping first home buyers, and I now work mostly with business owners. This is around planning, lending, and managing risk for them and their staff. I’m passionate about community and connecting those in need with opportunity. I’ve been very privileged to do this in my previous career, now in my business and for 20 years as a Trustee of the Te Aro Health Clinic. Our clinic delivers high quality health care for Wellington's most vulnerable and I'm very proud of the fact that Te Aro is now an integral part of Wellington City Health system. I work in New Zealand's two best cities, Tauranga and Wellington. In Tauranga I swim, bike and run (maybe YOGA if I'm feeling particularly aware!) and in Wellington I mostly seem to buy my adult children dinner and drinks.
The information shared in this post is meant to be general guide to support you on your journey. When making important decisions about your finances, we encourage you to seek independent financial advice first, tailored to your unique situation. As well as talking with a financial adviser, make sure you talk to your lawyer and accountant too – together they'll help you find the best solution for your specific situation. Our knowledgeable financial advisers are here to help. Check out our website for the details about our financial advisory services in our disclosures https://www.velocityfinancial.co.nz/disclosure-statement.