Originally posted by Gary Lin
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Originally posted by Anthonyacat View Post
Plus they will match my ANZ floating rate of 6%.“Our favorite holding period is forever.”
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have you defeated them?
your demons
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Originally posted by Perry View Post
Of course, there's the risk that NZCU will fold, but I suspect that is relatively unlikely.
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Originally posted by Neongreen View PostWait a moment, I didn't realize this had happened - you could conceivably mortgage your house and reinvest it to earn a pretty low risk return. 5% at 5 years reinvested with CU at 5.80%, means you get an easy .8% of your loan balance a year. Plus say a $x,000 new loan bonus.
Of course, there's the risk that NZCU will fold, but I suspect that is relatively unlikely.
For 0.8% it seems like a heck of a lot of risk.
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Tony Alexander had some interesting comment in his latest mailer
At some stage possibly before mid-year, the anticipation of tightening monetary policy in the United States will place upward pressure on NZ fixed borrowing costs. Borrowers may want to consider fixing before then, taking advantage of the strong and increasing competition between lenders for mortgage business.
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I thought Tony killed his mailer? Or is it operating under a different name now? Will go have a look. I miss reading his comments each week.
As for the TD vs Mortgage arbitrage, there are two drawbacks. The first is that you pay a mortgage monthly, but most term deposits pay on maturity. So you lose out based on compounding returns. The second is that even if it did pay monthly (no way it does, with that rate) they deduct RWT at 10-33%. Sure, you get it back when you file your return, but in the meantime you need to finance that shortfall from your own pocket.Last edited by Anthonyacat; 18-03-2015, 07:31 PM.AAT Accounting Services - Property Specialist - [email protected]
Fixed price fees and quick knowledgeable service for property investors & traders!
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Originally posted by Anthonyacat View PostThe second is that even if it did pay monthly (no way it does, with that rate) they deduct RWT at 10-33%.
Our competitive interest rates are calculated on a daily basis and can be paid at regular intervals . . .
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