How should you re-fix your mortgage interest rates? Lately lenders have started to offer a better interest rate to fix for two years rather than for one year; they clearly are encouraging you to fix for two years: Why?  NZ Advisor recently reported interest rate forecasts as follows:   “Westpac has predicted that the Official Cash Rate (OCR) will be cut in August and then in November, bringing it to an all-time low of 1% with the potential of it being cut even further. Westpac chief economist Dominick Stephens says there is also a possibility of the Reserve Bank cutting the OCR in September, depending on how weak the labour market gets. If this happens, there is a chance that the OCR could drop below 1% – a reflection of two years of economic slowdown for New Zealand.“ The bank economists are expecting the Reserve Bank’s interest rates to fall further before the year is out.  Politicians have been publically encouraging banks to follow the Reserve Bank lead and reduce their interest rates, and the last few months have seen many rounds of interest rate reductions by major lenders.  So why have major banks started to offer better interest rates … Continue reading Which fixed-term mortgage interest rate offer is best?