A leap in confidence
The high level of sentiment regarding the New Zealand economy’s prospects over the coming year has lifted even further, according to a recent report from the Bank of New Zealand (BNZ).
BNZ’s latest poll shows that a net 42 per cent of respondents expect the economy to get better over the next twelve months.
This is a huge leap from the net 15 per cent positive response in July, well above the previous record of +27 per cent in March, and wipes out the easing in sentiment recorded from April to July.
BNZ analysts say that these latest results suggest some continuation in the short term of recent upward pressure on the NZ dollar and medium to long term fixed borrowing costs.
For current fixed home loan rate holders who are nearing the end of their fixed rate term, or those considering borrowing in the near future, the news that medium to long term fixed borrowing costs may continue to rise is certainly one to take into consideration.
It may be, depending on your specific circumstances and preferences, that a shorter fixed term for your home loan, or a floating rate home loan, may be more suitable and cost effective for you at this time.
It’s important to discuss your situation thoroughly with your mortgage broker prior to making any decisions, to ensure you are choosing the home loan option that is in your best interest.