The End of Record Low Interest Rates in New Zealand?

15July 2021

The End of Record Low Interest Rates in New Zealand?

This week in New Zealand saw some vibrant discussions about interest rates.


Firstly, ASB raised some major interest rates, just before the Reserve Bank was due to announce its Official Cash Rate position.  Read more about the ASB hikes here.

This of course set social media alight.

What did ASB know?  Was the honeymoon rate period over?

We now know that the Reserve Bank held rates, but gave some indications that they’ll be going up.  Its pretty obvious to most commentators that the rates will go up, and now is the time to review your position.

We found a good video from Wellington based Mortgage Adviser Michael Anastasiadis, that discusses your overall loan structure, and the need to look beyond JUST your interest rates.

Here is that Video:



We also found some comments from Waikato based Rohit Ranchhod, from Smart Brokers, who helps people to pay down their mortgages faster.  In a nutshell, its not rocket science, focus on your principle, or the TOTAL you owe, and do all you can to maximise your payments.  

You’ll often notice these ideas pop up on Facebook – pay your mortgage off in 10 years etc.  There are some valid methods in there, and without pushing anyone to make drastic changes, it seems from our desk that you simply need to stay in touch with your mortgage adviser, or whoever you use, and ensure you are doing all you can to pay off your amount owing.  

The last comment we have is for property investors.  If you have multiple properties, is NOW the time to look at selling and consolidating?  Are you still in the investing game for the reasons that you started?  

In that regard, you need to stay in regular touch with good advice, and probably, a Property Accountant.  Our preferred option right now is Ross Barnett from Coombe Smith One50 group, simply because he seems to put out so much good, quality education.


Summary point is this.  Interest rates ARE going up.  Cost of living SEEMS to be going up.  Consider your position, and get busy making sure you are set for the changes coming up.

Ken Graham.


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