Interest Rates

[props4u]

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I agree, I am refinancing at the moment and have been offered 5.72%.

Now this is a lot better than my current fixed position, but still not nearly as low as some people here seem to be getting. And I'm only leveraged to 40%, so there's heaps of equity...

Going to have to try harder...

this is sounding weirder by the day (how banks operate or rather how do they operate?) ... i have LVR 65 and was offered 5.24 ... yet Davo36 with LVR 40 was offered 5.72

is it a case of "who" you know (negotiating with at bank) ???

OR as with mr "X" a PI that i know with substantial portfolio (got all his down to 5%) ... is it more a case of the larger the portfolio, the more negotiating power you have (am beginning to suspect so and stands to reason) ???

the million dollar question remains ... how does one twist their arms (banks) ??? ... any clues or advice on negotiating tactics ???

to give you example of what i mean by tactics ... at the bank, when reason i had set up the meet became apparent ... bank person delivered preemptive spiel on how the media was BSing about bank rates and that it was all baloney journalism ... ok my question here is how does one respond to that???

Davo36 ... recommend you hold back like myself, continue shopping around if you can afford it timewise

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We have lots of clients now paying 5% floating or even under 5% fixed for 1 year.

I suggest talking to a good broker! That is what most of our clients do.

Ross

noted, thx Rosco but have already tried that ... broker's offer was 5.4 ... higher than banks offer ... how does one determine who's a "good" broker? ... should one shop around with brokers too (not just banks) ?

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Give Equilibrium of Kiwibank , a regular commentator here a call on 0800 452013 he knows how to twist arms to get you the best deal going guaranteed!

thx mrsaneperson but have already tried kiwibank ... i guess it works for some but not everyone (meaning, win some lose some) ... all the same appreciated ... i'll try another broker too and see what happens AND one other bank not yet tried

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[Rosco]

Have you tried just going to another bank?

Often they will give you a good rate to get you on board. Then you can take this or use it against your current bank.

Otherwise you can get a discount with anz through nzpif.

Lastly your 5.24% floating isn't too bad. Fixing for 1 year should give you a better rate, but with other risks asociated.

Ross

[mrsaneperson]

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thx mrsaneperson but have already tried kiwibank ... i guess it works for some but not everyone (meaning, win some lose some) ... all the same appreciated ... i'll try another broker too and see what happens AND one other bank not yet tried

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Yes but most importantly did you try Equilibrium on the 0800 number given in my post above?
I had very unsuccesful dealings with a number of people at Kiwibank until i touched base with Equilibrium ,he's head & shoulders above everyone else .

[Maccachic]

I didn't think BNZ worked through brokers?

The BNZ Total money lets you link in up to ten accounts (partner, parents, family etc) the total of those accounts is taken off the mortgage total and you only pay interest on the remainder.

I have given up on my broker and arrange things myself seem to work pretty well. I network via work with a residential lender at BNZ and managed to get a great deal I then used a lawyer in the same networking group to refinance.

The thing I found odd is national bank can't better the floating rate I have with them on a fixed term.

[King13]

Maccachic - Total Money interest is 5.74%. Has BNZ offered a better rate? (you state 5.44% in an earlier post)

[Rosco]

BNZ total money, sounds OK. But why not just have a revolving credit facility would do the same thing.

Put all your savings and other accounts into the one. If you need money for something, draw it out of the revolving credit facility.

Ross

[Perry]

Is it worth mentioning the costs of
the assorted 'facilities' mentioned?

[props4u]

Is it worth mentioning the costs of
the assorted 'facilities' mentioned?

yeap, it grates on me every time i see this and that fee plastered everywhere, is it any wonder they make heaps? ... way back when introducing credit cards it was "Free" ... to hook peeps in !!!

I had very unsuccesful dealings with a number of people at Kiwibank until i touched base with Equilibrium ,he's head & shoulders above everyone else .

same happened to me with kiwibank, i got nowhere ... so, will try him out ... thx

I didn't think BNZ worked through brokers?
The BNZ Total money lets you link in up to ten accounts (partner, parents, family etc) the total of those accounts is taken off the mortgage total and you only pay interest on the remainder.

correct they don't, am dealing with them direct ... as for total money thx for clarification ... it explains anomaly i couldn't figure out many moons ago

I have given up on my broker and arrange things myself seem to work pretty well. I network via work with a residential lender at BNZ and managed to get a great deal I then used a lawyer in the same networking group to refinance.

The thing I found odd is national bank can't better the floating rate I have with them on a fixed term.

i was flabbergasted when broker offered me 5.4 (higher than bnz offer at 5.24) ... was evidently mistaken to think brokers commanded better rates due to volume they put through ... i suspect they have different modes of operating, trouble is, we'll never know their trade secrets without tutoring

anyhow here's my story ... going back 3 yrs ago when refinancing and when fishing around ... nat bank offered me better deal than bnz had offered, i assumed (as Rosco suggested) to get my business, it was only then that bnz matched the nat bank offer thus stayed on with them instead of migrating (a mistake)

this time around, if i get better than 5.24 from elsewhere and even if bnz better it (not simply match it) ... i'll be saying bye bye ... have 30+ yrs history with em and paid off mortgage and this is what i get from them? ... so much for their non existent loyalty to their good paying customers! ... they just want to cream it all the way down to the last 0.005%, well they can stick it !!! ... GULP! ... i may have to eat my words ... am slow learner, its only recently (in years) that began to focus on finance, hence beginning to fish around 3yrs ago

BNZ total money, sounds OK. But why not just have a revolving credit facility would do the same thing.

Put all your savings and other accounts into the one. If you need money for something, draw it out of the revolving credit facility.

don't fully grasp concept ... do you mean instead of having mortgage for say 350 (for one property) at floating rate ... one sets up rev cred for same amount (350) at floating rate and we control our repayments (hopefully paying it off earlier)?

and for how long is rev cred valid for? is it same as mortgage term (say for 25 years)?

Rosco, maybe you should consider setting up some tutoring seminars, i would be candidate for it

Edited to add this Q - what is "nzpif"? (with ANZ)

[Maccachic]

Total money works better for us as my partner is self employed so has tax and acc sitting in an account to be paid each year, it also means any pay sitting in our accounts etc will come off the total and as I put everything thru my credit card and pay off monthly this should help as well - time will tell.

I spoke to the lender at Westpac yesterday and actually felt really guilty after I hung up he actually seemed upset (?) that I was leaving, I did give them the chance earlier to stop me leaving.

Yes BNZ have offered me lower rates than advertised hence the 5.44% for total money floating am planning on putting just enough in their to cover any savings we may have and the rest can be fixed on 1 year at 4.95%.


NZPIF http://www.nzpif.org.nz/

[Toasty]

Just got offered 2 years fixed for 4.99%. I have taken portions of my floating (5.0%) in the two companies I have and grabbed it.

I now have portions on:
4 years 5.99%
3 years 5.75%
2 years 4.99%
Floating 5.0%

Nerve racking stuff this but I struggle to see us down under 5.0% indefinitely. Seems like a pretty good spread to me.....I hope...

[mrsaneperson]

BNZ total money, sounds OK. But why not just have a revolving credit facility would do the same thing.

Put all your savings and other accounts into the one. If you need money for something, draw it out of the revolving credit facility.

Ross

Thats exactly why i am now with Kiwibank on a Revolving Credit account & paying less interest than before when i was with BNZ, offset total money.Thanks to Equilibrium a regular poster here on this thread.

[SwissKiwi]

Just got offered 2 years fixed for 4.99%. I have taken portions of my floating (5.0%) in the two companies I have and grabbed it.

So your position is that the world will not be looking much rosier in 2 years, therefore you wont be caught out with much higher rates?

[NovInvestor]

Fixed for 2 years at 4.99% with National for my 7th purchase.

[SwissKiwi]

Fixed for 2 years at 4.99% with National for my 7th purchase.

You've bought all those quite recently with Rons guidance is that right?

You are buying and holding them all or?

[Bluekiwi]

You've bought all those quite recently with Rons guidance is that right?

You are buying and holding them all or?

Ron never sells, everyone knows that