Interest rate warning for borrowers
At the moment, it is offering a rate of 5.75%, roughly the middle of the market. But it expects a gradual increase in the official cash rate over the next couple of years to push up interest rates across the board.
Mortgagerates.co.nz polled some of the country’s economists on what they think home loan borrowers will be paying over the next few years.
UBS expects the rise in interest rates to happen much faster than other pundits are predicting. Its economists are picking a median floating rate of 6.6% by next March, up from 5.8% now.
All of the economists expected some movement in the rates borrowers pay by the end of the year. By the end of next year, they all expect floating rates to be at least 6.4%.
Click the button below to subscribe and will have free unlimited access for a limited time to full article and all other articles on the site.
You will also be able to comment on articles on Good Returns.
