OCR - Canstar Comments

Please attribute quotes to Canstar general manager Jose George:

“It is an uncertain environment for home owners – especially first time buyers. As recent statistics show, while house prices have started cooling in Auckland and other larger cities, mortgage rates are starting to trend upwards.

“Independent of OCR, the costs of servicing a mortgage are rising. Couple this with rising inflation and the flow-on effect this could have on other living costs, you have a situation where an already stretched household budget will not be able to take the added pressure for most NZers. Canstar’s advice to borrowers and also to those saving for a deposit for a home is to ensure that you work to a budget. To remain confident that that you can continue to service debt even if mortgage payments were to increase, regularly track and review your financial health and structure your home loan in a way that best suits your personal circumstances. Getting into the habit of regularly reviewing your budget is a great way to spot potential stress and help avoid financial strife further down the road.

“When it comes to securing a mortgage, it’s certainly not all doom and gloom and the bottom line is that the more research you do, the more informed you will be and a stronger position you will be in to negotiate a deal that works best for you.

“For savers the situation is more positive. Despite a series of drops in OCR, term deposit rates have remained largely untouched over the last 12 months or so. We are now starting to see increases in deposit rates, reinforcing the belief that banks are keen to grow their existing domestic deposit book.

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