Independent calculator gauges best mortgage deals

Media release - July 26, 2006

Independent calculator busy gauging best deals in the rising mortgage rate market

An independent mortgage calculator to beat rising interest rates is receiving significant interest as the Reserve Bank announces its official cash rate (OCR) tomorrow.

Financial commentators are forecasting the possibility of another rate rise this year as the Reserve Bank battles to hold down inflation, running at 4.0 percent, which is the highest in 16 years.

Tomorrow, the Reserve Bank will announce its stance on the OCR, though no change is expected to the current 7.25 per cent rate, but
mortgage rates are continuing to rise.

Today, online financial commentator www.interest.co.nz said many of New Zealand ‘s 1.16 million mortgages will soon be rolling over.

The company has just launched a mortgage calculator, to help people with mortgages by deciding the best option when their fixed-term rate contract was up for rollover.

Interest.co.nz publisher David Chaston said 82.5 percent of people with home mortgages were looking around at the best deal for fixed rates.

It is estimated that more than half of all mortgages – more than $60 billion in contracts – will be up for review in the next year, and a disproportionate number will be due in the next six months.

``Two year bank fixed rates range from 7.85% to 8.30%. Banks with lower rates will soon be raising them,’’ Chaston said today.

``There are a very wide range of options available so people with mortgages – which is most of us – need to work out is the best for them.

``The mortgage calculator on our website allows home-owners to compare two competing mortgage offers, and instantly see the total cost comparison which is something bank calculators won’t tell you.

``It lets you explore for the best set-up. It will show what interest rate you can afford.’’

ENDS

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