The fixed term of 1 year on our mortgage is expiring next month. We got the notice in the mail the other day and had made our inquiry. There's no re-fix fee at ANZ and they stressed that other banks have it but not them.
Should we choose not to re-fix, our loan would default to the floating rate. It currently stands at 6.45%. Should we re-fix, it would be at 5.5%. The other day Bollard announced a status quo on the OCR. I guess that wasn't a bad decision to make. ASB however lowered their floating rate to its lowest at 5.75%! I'm just hoping that would influence some positive change in the banking sector. When I say positive I mean more money in consumers' pockets.
We chose to lock it in for another year for 5.50%. Effective 11 October, our repayments will be $866/fornight. Because we are already used to the lifestyle of paying more, there's definitely a lot of wiggle room in the budget to pay more than the minimum. Woot!