OCR Increased, did you miss the chance?

If you missed the opportunity from early October 2021 to check your mortgage structure and how much interest rate you are paying and you will pay in the next 1 to 3 years, your options are much limited today. The current window will be closed very soon here are details:

Today (24 Novmber 2021) RBNZ (Reserve Bank of New Zealand) increased OCR 0.25% again. They had increased OCR 6 October 2021 and this is the second time in less than 2 months. If you want to know more about OCR and how that impacts your mortgage rates and housing market you can check this post. If you follow ANZ, ASB, Westpac, BNZ, Kiwibank, TSB interest rates you can shock how fast they are increasing. 1 year special fixed rate is 3.65%+ and 2 years special fixed rate is 4.35%+ and 5 years special fixed rate near to 5%!

What would be next

                From the above picture, RBNZ will raise OCR faster and sharper in the next couple of months and interest rates will increase accordingly to help reduce inflation. You can see and feel how much prices are increasing daily when you go to supermarkets. Then to control inflation, this process will continue. Interest rates will be increased until people control their spending. Cheap money time is almost gone.

What you can do

I suggest, you as a homeowner or person who may get a mortgage soon, correctly plan your finance to protect yourself, your family and your asset in this environment. If you need help let me know. Again this window will be closed soon!