Originally posted by Damap
View Post
Announcement
Collapse
No announcement yet.
Interest Rates
Collapse
X
-
Plenty of their lending is not on mortgaes. Credit Cards are 20%, business is still up there around 12%.
Originally posted by eri View Postas has been said here before
the outlook is for flat
followed by flat
with a long term outlook of flat
so yes
imho
5 years rates will fall below 3.99%
sooner rather than later
unless
some currently unforeseen even happens that makes money scarce again
but it's really hard to see what that would be
as current economic theory suggests
pumping more money into the economy
is the only politically viable cure
for any economic ill
(including having too much money in the economy!)Originally posted by eri View Postin the long run it'll happen
but any gains made
will be taken by increased taxation
in all its many formsOriginally posted by Judge View PostCould you believe 12 months ago that we will have sub 4% rates for 1 year term?Originally posted by ivanp View PostAs I read from the article:
1) ASB borrowed 5 years at 4.245% - they will probably lend it at 4.99% or close, and maybe the volume they just borrowed is enough for the few upcoming months, but will be over by the time rates fall below 4% ? Then they will borrow more (at lower rates) to lend more?
2) BNZ borrowed at 5.314%. which doesn't make any sense to me as that's above their 5-year lending rates. How do they not loose any money here? I don't understand what's going on here. Did they raise these $550m for other lending such as credit cards?
Comment
-
What do you mean Wayne. Fix or wait.
If OCR is announced and drop another 2.5%, I don't think all bank will change their rates instantly. If they do, there won't be much different happening "sometime" .
What are your thoughts according to your experience. I know we don't have crystal ball
Comment
-
Originally posted by primal View PostI know we don't have crystal ball
Odds on the OCR won't change this time (but they might - almost toss a coin territory at the moment).
But if it does it would be .25% down.
Work out what paying say 0.25% more for the year would cost you?
Are you not concerned about the 0.5% drop next year so only fixing for 6 months?
Comment
-
You have negotiated at 4.25% for the year.
If the OCR went down say 0.25% and this was reflected in the interest rate you could negotiate (4.0%) then if you fixed now you would be paying 0.25% more.
So if this was on $500k then it would cost you $500k x 0.25% or $1250 more if you fixed now.
But would the 0.25% OCR cut be reflected ifully in the 1 year rate?
Will the OCR drop?
Will the OCR drop more next year while you are fixed for 1 year therefore you'd be better fixing for 6 months.
All guess work - so the answer was YES.
Comment
-
Originally posted by primal View PostI negotiated from 4.49% to 4.25% and if OCR drops it will be 4.24% but will the bank drop the rate instantly. As per the history goes it will take may be month or two before kiwi bank drops it as they are nz owned bank.
Is there a direct correlation?
You negotiated a .24% reduction in the current 'headline' rate so you would think you could do the same if the headline rate came down hence me saying 4%.
Comment
-
Guys.. I seek your advise and your opinion
I have 3 loans
1) 500k fixed at 5.65% till Dec 16
2) 200k fixed at 5.95% till Aug 17
3) 470k fixed at 5.95 till Jul 17
Early Repayment Recovery 'Break Fee' of respectively
1) $5,442.48
2) $5,127.07
3) $11,946.55
Bank has offered $3000 Cashback and is offering 4.25% fixed for 1 year...They dont seem to budge on waiving the break fees.
Thoughts?
Comment
Comment