Hi Olly

Our home loan (ASB) for our rental property comes of a fixed rate of 9.05% in July. I would like to re-fix the loan ($301,876) for 2 years at 7.30%. My husband says we should take advantage of the floating rate of 6% for a while and fix it once it starts going up again. I say the fixed rate would have increased at the same time and we won’t gain anything by waiting and we should lock it in now. What would you advise us to do?

Thanks
S

Dear S
I think stay floating for a few months yet. If there are strong signs of yet another interest rate rise then fix for 1-2 years.
I am not convinced that the economy can stand more interest rate increases this side of Xmas.
A lot depends on what happens overseas.
Regards
Olly