Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Home owners urged to plan for interest rate rises

Media Release
28 January 2010

Home owners urged to plan for possible interest rate rises

Retirement Commissioner Diana Crossan says that potential interest rate increases later in the year are a reminder that budgeting needs to be a priority for home owners.

Reserve Bank Governor Alan Bollard today kept the official cash rate at 2.5 per cent. However many economists are predicting that the OCR will increase later in the year, which will push up interest rates.

Diana Crossan says there is an expectation that 2010 will see an end to the lower interest rates which home owners have enjoyed over the past few years.

“A mortgage is the biggest single expense for many New Zealand families. Even a slight increase in the interest rate can make a big difference to your budget. But you can ease the pain if you start planning ahead and prepare for any possible changes in your commitments.

“If you’ve never done a budget before, the chances are you will be surprised just how much difference it can make.

“When you know exactly where your money is going each week, it’s much easier to control and prioritise your spending so you can get the best out of your hard earned money. Even putting away just a small amount of money each week will make it easier to cope with a mortgage rate increase,” says Diana Crossan.

“Experimenting with the Mortgage repayment calculator on Sorted will give you an idea of how a mortgage rate increase will impact on your repayments. Reviewing your mortgage from time to time is a good habit to get into anyway. It’s surprising how many people put their mortgage in place and forget about it. And if you’ve got a budget, it might also be timely to review it to see if you can make further savings.”

“Reducing your overall debt, particularly high interest rate credit card bills, will also put you in a much stronger financial position in the event of your mortgage payments going up.

A range of Sorted booklets, based on key information from the website, can be ordered online at sorted.org.nz/ordering or by calling 0800 SORT MONEY (0800 676 866).

ENDS

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 




Civil Contractors: Massive Rebound In Civil Construction Business Confidence

New Zealand’s civil construction industry is riding a massive rebound in post-pandemic business confidence – but this may be undermined by skills shortages, which continue to be the industry’s number one challenge... More>>



Energy: Feeling Our Way Towards Hydrogen - Tina Schirr

Right now hydrogen is getting a lot of attention. Many countries are focusing on producing hydrogen for fuel, or procuring it, or planning for its future use... More>>

Maritime Union: Calls For New Zealand Shipping To Resolve Supply Chain Crisis

The Maritime Union says there needs to be innovative responses to ongoing shipping congestion. Maritime Union of New Zealand National Secretary Craig Harrison says it is essential that New Zealand develops its own shipping capacity... More>>


Housing: New Home Consents Continue To Break Records

A record 44,299 new homes were consented in the year ended June 2021, Stats NZ said today. “The annual number of new homes consented rose again in the June 2021 year, the fourth consecutive month of rises,” construction statistics manager Michael Heslop said... More>>


Real Estate: June Home Transfers Remain High
There were 44,517 home transfers in the June 2021 quarter, the highest June quarter figure since 2016, Stats NZ said today. The number of home transfers was very similar to the March 2021 quarter and was up 18,252 from the June 2020 quarter... More>>



Statistics: Household Saving Falls In The March 2021 Quarter

Saving by New Zealanders in the March 2021 quarter fell to its lowest level in two years after rising sharply in 2020, Stats NZ said today. Increases in household spending outpaced income growth, leading to a decline in household saving from the elevated levels that prevailed throughout 2020... More>>

ALSO: