Interest Rates

[PTILoveYou]

That's why I predict interest rates will be in the 3%-4% mark (if not lower) come next recession.

[Maccachic]

That's why I predict interest rates will be in the 3%-4% mark (if not lower) come next recession.

Have they ever been that low? Id be happy to settle for 4.89% for 5 years will see what BNZ come back with

[PTILoveYou]

Have they ever been that low? Id be happy to settle for 4.89% for 5 years will see what BNZ come back with

I dont think interest rates have never been that low in NZ, but judging based on what happened overseas, I think interest rates will drop lower in NZ come next recession.

Basically after USD unplugged from gold, interest rates worldwide have been in free fall ever since.

This is one of two ways to bring affordability back, ie cashflow properties in Auckland, which is 1) interest rates drop to 3%, or 2) massive price reductions (low probability).

[Perry]

Yes, they were that low, back in the sixties and seventies.
A State Advance Corp loan was 3% fixed for the entire
period of the loan. Thems were the days.

[PTILoveYou]

Yes, they were that low, back in the sixties and seventies.
A State Advance Corp loan was 3% fixed for the entire
period of the loan. Thems were the days.

But that's subsidised loan rate from the government right? back then the economies were more self orientated (less global trade & freemarket) and maybe even less 'capitalised' than now? Also unions were big back then, unlike now where the rich and capitalists have all the say.

[Perry]

The SAC (now HCNZ) was the BIG lender of that era. Banks did not do
residential loans and second mortgages through solicitors and assorted
Friendly societies were the norm. Inflation was negligible, wage rates
were good and NZ had over-full employment. (more jobs than workers)
Almost no average Joe had heard of the NZ stock market, overseas funds
were required to buy a new car and two murders nationally per year was
absolutely scandalous!!

Just how much of a subsidy 3% was I don't know. People could capitalise
on their 75 cents/week family benefit allowance for first home building. If
I recall close to right, my wages were $14/week, back then and I had
$180 in my Post Office Savings Bank account.

Wow!

[PTILoveYou]

The SAC (now HCNZ) was the BIG lender of that era. Banks did not do
residential loans and second mortgages through solicitors and assorted
Friendly societies were the norm. Inflation was negligible, wage rates
were good and NZ had over-full employment. (more jobs than workers)
Almost no average Joe had heard of the NZ stock market, overseas funds
were required to buy a new car and two murders nationally per year was
absolutely scandalous!!

Just how much of a subsidy 3% was I don't know. People could capitalise
on their 75 cents/week family benefit allowance for first home building. If
I recall close to right, my wages were $14/week, back then and I had
$180 in my Post Office Savings Bank account.

Wow!

So what happened after? Immigration is one, what else?

[Anthonyacat]

Thought I'd post some actual interest rates on this thread. Just continue the general discussion around the outside.

ASB: Lending of just over $250k, LVR under 80%.
6 mths fixed rate 5.45%pa
12 mths fixed rate 5.39%pa
18 mths fixed rate 5.39%pa
24 mths fixed rate 5.35%pa
36 mths fixed rate 5.45%pa
48 mths fixed rate 5.65%pa
60 mths fixed rate 5.70%pa
Along with $3,000 cash


Plus they will match my ANZ floating rate of 6%.

[eri]

Banks did not do
residential loans and second mortgages through solicitors and assorted
Friendly societies were the norm. Inflation was negligible, wage rates
were good and NZ had over-full employment. (more jobs than workers)
Almost no average Joe had heard of the NZ stock market, overseas funds
were required to buy a new car and two murders nationally per year was
absolutely scandalous!

and in 1973 the road toll was 843!

compared to <300 last year

http://www.transport.govt.nz/research/roadtoll/annualroadtollhistoricalinformation/

[PTILoveYou]

Thought I'd post some actual interest rates on this thread. Just continue the general discussion around the outside.

ASB: Lending of just over $250k, LVR under 80%.
6 mths fixed rate 5.45%pa
12 mths fixed rate 5.39%pa
18 mths fixed rate 5.39%pa
24 mths fixed rate 5.35%pa
36 mths fixed rate 5.45%pa
48 mths fixed rate 5.65%pa
60 mths fixed rate 5.70%pa
Along with $3,000 cash


Plus they will match my ANZ floating rate of 6%.

ASB rates are terrible (as usual)!

[Wayne]

ASB rates are terrible (as usual)!

compared with?

[Anthonyacat]

What do you want Wayne? Comparative justification? From Gary?

[Wayne]

What do you want Wayne? Comparative justification? From Gary?

Something like that.
At least you put them all together - nice and neat for time poor people
Busy days today!

This thread sometimes depresses me when I see people getting great rates - but you can't have the best rate all the time
particularly with a large number of mortgages maturing at differant times.

[PTILoveYou]

compared with?

In my experience (ASB/Wsp/ANZ/Kiwi/BNZ), ASB has the worst rates.

[PTILoveYou]

Something like that.
At least you put them all together - nice and neat for time poor people
Busy days today!

This thread sometimes depresses me when I see people getting great rates - but you can't have the best rate all the time
particularly with a large number of mortgages maturing at differant times.

It's ok to get bad rates, that's the price we pay for spreading our mortgages across multiple banks! (Also we limit our opportunity to refinance and get great cashback every 12 months...)