RBNZ Interest Rate Decision: Comments From FAMNZ Managing Director

“Consumers have been waiting for this, and every rate cut improves affordability for mortgage holders, which is a positive step.

“However I would urge those who can afford to keep up their current level of repayments to do so, as this will protect them and give them a buffer when rates rise again. Every dollar paid over the principal saves interest in the long run.

“Today’s Reserve Bank decision also increases the borrowing capacity of prospective homebuyers, enabling more to step into the market.

“With lower repayments, many existing owners will have questions around possible refinancing options, and I’d encourage them to see a mortgage adviser to provide the best advice and ensure their interests are looked after.”

“Make sure your bank passes on the rate cut in full and quickly, and if they don’t you should call them. If they can’t help you it may be time to look elsewhere.

“It is a competitive market and each lender has different products. The important things is to ensure your mortgage is best suited to your individual circumstances and goals.

“Mortgage advisers not only focus on what is best for you, but have access to a wide range of products not available through traditional lenders.”

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