The central bank ups the rate again and again some of the interest rates drop at the retail banks. Why? Less pressure on wholesale rates, we seem to have a different trajectory in terms of inflation compared to the rest of the world. The rest of the world has an impact on the cost of our funds.
Longer term rates are where the drop has happened, three to five years. This is great for some sense of certainty but makes getting the right structure more important.
We see a great a need for using flexible products to reduce your interest rate costs. Products like revolving credit home loans can make use of every last drop of your credit funds, to keep the average home loan balance lower. This become more fashionable now with the higher rates than what we saw over the past few years. This is as the return on every last dollar looks way better at 6% than 3%.
Get in touch to get the right structure, fixing longer can mean that you will be stuck with less flexibility unless you plan ahead.