Short-term mortgage rates now a waste of time

There is no great benefit in sticking to floating, six- or 12-month rates for mortgage holders anymore.

Independent economist Tony Alexander says the two-year rate of 4.99% from ASB, Westpac, BNZ and ANZ is attractive, and that timeframe is where most Kiwis fix. 

Talking to Sharesies on its Shared Lunch podcase, While the short-term rates will come down a bit further as banks jockey for position in a market that has a low level of loan growth, do people need to hurry and fix at the 4.99% rate?

Alexander doesn’t see the upward leg of monetary policy cycle starting again until late next year or even 2027. “That is the next shift in the market in terms of thinking about interest rates.