Navigating Today’s Mortgage Market: Why Expert Advice Matters More Than Ever

By Jay Diesh, Dash Financial Services

The mortgage market in New Zealand is shifting rapidly. Interest rates are fluctuating, inflation is a constant concern, and banks are adjusting their lending policies to keep up. Whether you’re a first-home buyer, an existing homeowner with a mortgage, or a property investor, making informed decisions about your home loan has never been more critical.

As a financial adviser specialising in mortgages, I’ve seen how quickly the landscape can change. With over a decade of experience—both in banking and as an independent mortgage adviser—I help my clients navigate these complexities, ensuring they get the best possible deal tailored to their needs. Here’s why mortgage advice is essential in today’s uncertain climate and how seeking guidance could save you thousands in the long run.

Where Are Mortgage Rates Heading in 2025?

After several years of sharp interest rate hikes, the New Zealand housing market is seeing a shift. Inflation has been cooling off, leading some banks to cut mortgage rates. However, the road ahead remains uncertain. The Reserve Bank of New Zealand (RBNZ) has signalled that while inflation is dropping, it’s not out of the danger zone yet.

Short-Term Rate Cuts, But Long-Term Uncertainty

Several major banks have lowered their fixed-term mortgage rates recently, responding to declining inflation pressures. But will these cuts continue? That depends on multiple factors, including global economic trends, domestic wage growth, and how persistent inflation proves to be.

According to the Reserve Bank of New Zealand, inflation remains above the 1 - 3% target range, meaning the RBNZ could maintain higher interest rates for longer to ensure price stability. While some economists predict further rate cuts later in 2024 or 2025, others warn that inflation could spike again, forcing rates to stay elevated.

The key takeaway? While mortgage rates may soften in the short term, locking in the right structure now is crucial to avoid being caught off guard if rates rise again.

Why Mortgage Advice is Essential – Even if You Already Have a Home Loan

Many people assume mortgage brokers are only useful when securing a first home loan. But in reality, mortgage advice is just as critical for existing homeowners. Here’s why:

1. Your Loan Structure Could Be Costing You Money

Most people focus solely on getting the lowest interest rate, but the way your loan is structured matters just as much—if not more. Fixed vs floating, different term lengths, and offset accounts can all impact how much you pay over time. A well-structured loan can save you thousands, and a mortgage review could reveal opportunities you weren’t aware of.

2. Refinancing Can Open New Opportunities

If you locked in a mortgage when rates were at their peak, refinancing could help reduce your repayments or allow you to access equity for renovations, investments, or other financial goals. However, breaking a fixed-term loan can come with penalties, so it’s essential to get professional advice before making a move.

3. Market Changes Affect Homeowners, Not Just Buyers

Even if you’re not in the market for a new property, economic shifts can still impact your financial position. Whether it’s rising costs of living, changes in lending criteria, or fluctuations in property values, having a mortgage expert in your corner ensures you stay ahead of the game.

Common Mistakes People Make With Their Mortgage

Over the years, I’ve helped hundreds of clients correct costly mistakes they didn’t even realise they were making. Here are some of the most common:

Not Reviewing Their Mortgage Regularly

Your mortgage isn’t a ‘set and forget’ arrangement. Interest rates, loan structures, and personal financial situations change, so reviewing your mortgage every 12 - 24 months is essential.

Fixing for Too Long (or Too Short)

Choosing the wrong loan term can leave you exposed. Fixing for too long might mean missing out on lower rates if the market drops. Fixing for too short could leave you vulnerable to sudden rate hikes. A tailored strategy is key.

Not Considering an Offset or Revolving Credit Account

If you have savings sitting in a low-interest bank account, an offset or revolving credit account could help reduce your loan interest significantly. Many homeowners don’t take advantage of these options simply because they’re unaware of them.

Focusing Only on the Interest Rate, Not the Bigger Picture

The lowest rate isn’t always the best deal. Banks often offer attractive rates but with restrictive conditions. A good mortgage strategy considers flexibility, repayment options, and long-term savings—not just the headline rate.

How I Can Help

My role as a financial adviser is to simplify the mortgage process and provide strategic advice tailored to your situation. Here’s what I offer:

• Personalised Mortgage Structuring – Ensuring your home loan is set up in a way that minimises interest costs and aligns with your financial goals.

• Refinancing & Refixing Strategies – Helping you decide when and how to adjust your mortgage to secure better terms.

• Bank & Lender Negotiations – I have relationships with multiple lenders, giving you access to better deals than what’s publicly advertised.

• Long-Term Financial Planning – Whether it’s buying an investment property, paying off your mortgage faster, or leveraging equity, I help clients plan for the future.

The best part? My services come at no cost to you. As a mortgage adviser, I’m paid by the lenders, not the client—meaning you get expert advice without the fees.

The Next Steps: Let’s Talk

If you’re wondering whether your current mortgage is still working for you—or if you’re planning to buy in today’s changing market—now is the time to seek advice. A quick conversation could save you thousands in interest payments and set you up for long-term financial success.

📞 Call me directly: +642102472087

📧 Email me: jay@dashfinancial.co.nz

🌐 Visit my website: Dash Financial Services

🔗 Connect on LinkedIn: Jay Diesh

Your mortgage is one of the biggest financial commitments you’ll ever make. Make sure you’re making the most of it.

---

The information in this article is general information only and is not intended as financial, medical, health, nutritional, tax or other advice. It does not take into account any individual’s personal situation or needs. You should consider obtaining professional advice from a financial adviser and/or tax specialist, or medical or health practitioner, in relation to your own circumstances and before acting on this information.