Interest Rates

[essence]

Friday, October 12th 2012, 10:13AM

Kiwibank has announced an extended range of home loan packages for people affected by the earthquakes in Christchurch. Source

Monday, October 15th 2012, 7:53AM

Home loan rates are low at the moment but could be lower if international markets weren’t so nervous at the moment, an economist says. Source

16/10/2012

Two things today. Firstly BNZ has withdrawn its 18m-month Classic Home Loan rate. Secondly we have an updated report on what ANZ economists are thinking about interest rates, the OCR and the new governor of the Reserve Bank, Graeme Wheeler. Source

The question would arise, re last quote, are the Banks likely to pass on any reduction of the OCR? Don't hold your breath!!

[Eugene]

Is anyone getting offered better than 5.99% for a 5 year rate?

I was offered 5.89 for five years, but declined

[essence]

Banks unlikely to react to low inflation

16/10/2012

Homeowners shouldn't hold their breath for a cut to their mortgages despite today's low inflation figure.

The rise in the cost of living has hit a 13-year low of just 0.8 per cent for the year to September 30, due to the high New Zealand dollar and slack domestic economy.

Westpac economists said the unexpectedly low rise in the cost of living was due to some quirks in the figures, meaning an interest rate cut by the Reserve Bank as a result was a risk, not likelihood.

Source

[essence]

Wednesday, October 17th, 2012

Kiwibank has this afternoon removed the equity caps on its special home loan rates. Borrowers no longer need 30% equity to apply for its six month, one year and two year rates which are all set at 4.99%. However the bank still deems them "strictly ‘limited" specials.

[essence]

NZ interest rates too high - Tower
17/10/2012

Interest rates in New Zealand are too high and a cut to the official cash rate is highly likely, says fund manager Tower Investments.

In its regular quarterly briefing this afternoon, Tower's head of fixed interest, Craig Alexander, said there were clear market expectations of 0.25 to 0.5 percentage point rate cuts in the next 12 months, and a further rise in the NZ dollar against the Aussie could provide a trigger.

Source

[Commercial Dan]

or 4.50% for 1 year

[Shane D]

or 4.50% for 1 year

CD, who is offering 4.50% for 12 months?

Shane

[Toasty]

ANZ gave me 4.99% for 2 years a couple of weeks ago.

You know guys what i think that the interest rates must be low. There are many investors, businessmen who wants to invest and wants to start business but due to high rates they do not take any step. Also, There are a lot of people who wants start business with a loan but they fear of taking loan as every Bank or company is charging high interest rate. Why they are charging so much high rate? I think it should not be like that. Their interest rates must be low so that everyone can avail this opportunity and could start business or to invest some where.

[Austrokiwi]

You know guys what i think that the interest rates must be low. There are many investors, businessmen who wants to invest and wants to start business but due to high rates they do not take any step. Also, There are a lot of people who wants start business with a loan but they fear of taking loan as every Bank or company is charging high interest rate. Why they are charging so much high rate? I think it should not be like that. Their interest rates must be low so that everyone can avail this opportunity and could start business or to invest some where.

Under international and banking regulations Banks are required to act in certain ways so as to limit risk. Under National and international Law/agreements residential mortgages are deemed the least risky and are actually positively encouraged. Business loans are seen as risky and too many business loans can threaten a banks credit rating...so banks charge more for business loans. This means for many business starters re mortgage the family home is the only way to go as the money is cheaper...........but there are relatively few who are prepared to risk the family home for a business....

If you wnat to change the business loan rates you have to first change national and international banking law.

[Commercial Dan]

Nobody, but it'll happen wihtin a year, could even be lower!

[halfempty]

On a the other end of the scale, Pioneer mortgages has sold some of it's loan book to "Pepper Financial".
One of my loans has gone from fixed with Pioneer on 7.25% to floating with Pepper at 9.25%!!!

[Perry]

Then perhaps you'll be a-floating
away from all the pepper spray?

[halfempty]

^^^ That would be so much funnier if it wasn't at 9.25%

[Keys]

^^^ a liar loan was it?