One of our mortgages comes due in a few weeks, and we're able to lock a term in now if we so wish.
We're looking at fixing for at least two years, but I'm unsure of what the best period of two or more years would be. (I heard RBNZ could be looking at dropping the OCR soon, but I understand that tends to impact the floating and shorter-term rates?)
My bank's offered me these rates:
2 year: 3.95
3 year: 4.45
4 year: 4.89
5 year: 4.29
TBH, based on those rates it's only really the two and five year terms that interest me much; but what are the longer-term rates expected to do over the next couple of years, and which term would people recommend and why?
I know we could wait around for the OCR to drop and to see what flow-ons this results in - the next announcement is 8 May, which is only six days after the mortgage's term is up - is it even worth waiting for that, given we're looking at fixing for two or more years anyway? I wouldn't wait any longer than that, given the floating rate is so relatively high (5.8%).
Thanks for any advice.