With mortgages and interest rates at their highest level since 2014, TMM issuer Philip McAllister sat down with George Carter, director of Nikko Asset Management, to discuss financial health and what it means for the current economy and beyond. told about what it means to
Saturday, November 12, 2022 at 6:17 AM
George Carter notes that the current cost of money in New Zealand is rising, affecting floating interest rates in banks and impacting the cost of New Zealand borrowing rates for mortgages and savings investments.
As that margin increased, it was typically around 2% in between those numbers, but has risen steadily over time, peaking at 4.5%, according to Carter.
“Those numbers have declined slightly, but are still relatively highs in history.”
Carter said the additional costs have impacted both the cost of a mortgage and the average New Zealand retirement savings. But not all is pessimistic, and there are practical solutions that can help offset the current upward cycle.
“The important thing is to do your homework and know what you’re paying for. You can negotiate interest rates with your bank, but if you have a fixed mortgage, the variable rate on any given day can change.” I don’t always care about changes in
Understanding your finances is an important part of managing your personal finances. “
As for the foreseeable future of interest rates and mortgage rates, there are projections that they will reach the end of the current upward cycle and are expected to remain reasonably stable for some time.
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