Tuesday, 25 May 2021, 10:46 am
A slew of banks have moved their fixed loan rates in both
directions in recent weeks, yet experts believe further rate
changes could still be on the cards.
In this month’s
Finder RBNZ
Official Cash Rate Survey, 13 experts and economists
weighed in on future official cash rate (OCR) moves and
other issues related to the state of New Zealand’s
economy.
While all experts surveyed predict the OCR to
remain at 0.25% this month, over half of those who weighed
in (58%, 7/12) believe further rate changes may be announced
within the coming months.
In the second half of April
Press Release – Finder
A slew of banks have moved their fixed loan rates in both directions in recent weeks, yet experts believe further rate changes could still be on the cards.
In this month’s Finder RBNZ Official Cash Rate Survey, 13 experts and economists weighed in on future official cash rate (OCR) moves and other issues related to the state of New Zealand’s economy.
While all experts surveyed predict the OCR to remain at 0.25% this month, over half of those who weighed in (58%, 7/12) believe further rate changes may be announced within the coming months.
In the second half of April 2021, several banks nudged their 1-year fixed mortgage interest rate down by 0.04% and their 2-year rate by 0.1%
Jennifer Eder/Stuff
While investors are not necessarily selling, fewer of them are attending open homes. (File photo)
The March 23 changes include doubling the time the bright-line test applies to investment property, meaning tax must be paid on capital gains if the property is sold within 10 years. Interest deductibility was removed for residential investment, stopping landlords from writing-off mortgage interest costs against the tax on their rental income. Reserve Bank loan-to-value restrictions also kicked in on March 1, meaning most investors need at least 30 per cent equity in a property. The result has been some landlords selling their investment properties, and a lot fewer investors looking to buy at the moment, according to Whangārei real estate agents.
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