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  • BNZ raises mortgage rates
    BNZ has raised fixed mortgage rates this morning, hard on the heals of the RBNZ high-LVR policy restrictions.
    They also raised most of their Term deposit rates a small amount.
    Last edited by speights boy; 21-08-2013, 10:21 AM.

    Comment


    • Originally posted by speights boy View Post
      BNZ raises mortgage rates


      They also raised most of their Term deposit rates a small amount.
      Just between you me and goalpost, no one else listen.
      Tony Alexander seems to throw in a few hints about these impending rises if you read between the lines in his weekly updates.
      I just fixed 376k at 3 years with them, so beat the latest rise which is cool.

      Comment


      • You are correct BK, he does talk more in terms of risk mitigation as opposed to absolute dollar savings.

        When we see the first headline 5yr 7 % figure, that will be a wake up to those you haven't witnessed a few cycles yet.

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        • Originally posted by speights boy View Post
          You are correct BK, he does talk more in terms of risk mitigation as opposed to absolute dollar savings.

          When we see the first headline 5yr 7 % figure, that will be a wake up to those you haven't witnessed a few cycles yet.
          Well, no surprise here with ANZ today announcing that all their fixed interest rates are going up (except their 6mth one).

          3yr rate is now 6.5% (from 6.05%) and 5yr rate is 7.1% (from 6.60%)

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          • Originally posted by Greenfields View Post
            Well, no surprise here with ANZ today announcing that all their fixed interest rates are going up (except their 6mth one).

            3yr rate is now 6.5% (from 6.05%) and 5yr rate is 7.1% (from 6.60%)
            No surprise to see them follow each other on rate rises.
            I just cant see the 5 year rate falling at all from here, its only going 1 way.
            In a short space of time the 2 and 3 year rates are now the same as what the 5 year rate was three months ago.

            With an unfixed mortgage would you now still consider a 2 or 3 year rate, knowing that.
            Or just stick to short term fix's below the floating rate.
            I have a lot of 5 year long term cover, so I think I will match up my new lending with just those short term fix's.

            Comment


            • Originally posted by Bluekiwi View Post
              I have a lot of 5 year long term cover, so I think I will match up my new lending with just those short term fix's.
              I had my people call their people BK; and they managed to come up with this, just for you.

              ASB's 'lowest ever' fixed term rate

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              • I have a single house (my first one) and this is my first time going through this process. I've tried reading as much of Tony Alexander's reports as possible, and think I am going to lock in 50% at 3 years and 50% at 4 years on Monday.

                He seems to think that rates will start rising significantly in 2014 and then peak in 2018 (although acknowledges this is impossible to predict). If I have 50% coming off Aug 2016 and the next 50% off Aug 2017, then at least I won't be getting hit at the predicted peak in 2018. The only other option would be to fix for 7 years I think, and don't want to do that. By fixing Monday I will also avoid the new round of rises that BNZ just started (I'm with ASB).

                Can't believe what a massive decision this is (could cost you thousands if you get it wrong) and every single homeowner, no matter how financially astute, or not, has to do it!
                Last edited by Wuket; 23-08-2013, 08:20 PM.

                Comment


                • Originally posted by Wuket View Post
                  . By fixing Monday I will also avoid the new round of rises that BNZ just started (I'm with ASB).
                  Ahhh.....
                  Is your rate locked in?
                  All ASB standard fixed terms increased today.

                  Comment


                  • Originally posted by Wuket View Post
                    Can't believe what a massive decision this is (could cost you thousands if you get it wrong)
                    and every single homeowner, no matter how financially astute, or not, has to do it!
                    Except those without a mortgage. They will
                    be looking more closely at term deposit rates.
                    Want a great looking concrete swimming pool in Hawke's Bay? Designer Pools will do the job for you!

                    Comment


                    • Originally posted by speights boy View Post
                      Ahhh.....
                      Is your rate locked in?
                      All ASB standard fixed terms increased today.
                      Yes

                      Originally posted by Perry View Post
                      Except those without a mortgage. They will
                      be looking more closely at term deposit rates.
                      Of course

                      Comment


                      • Originally posted by Wuket View Post
                        Yes
                        Good.
                        You've got your plan, and used some logic in the decision making.
                        Best thing is then you don't have think about it for 35 months.

                        Comment


                        • Originally posted by speights boy View Post
                          Good.
                          You've got your plan, and used some logic in the decision making.
                          Best thing is then you don't have think about it for 35 months.
                          Cheers

                          I am also thinking maybe just 100% at 3 years. If the peak is 2018 then having 100% come off two years prior to that in 2016, rather than 50% in 2016 and 50% in 2017 might be better. Depends on risk appetite I suppose.

                          Thanks for the feedback

                          Comment


                          • Originally posted by Wuket View Post
                            Can't believe what a massive decision this is (could cost you thousands if you get it wrong) and every single homeowner, no matter how financially astute, or not, has to do it!
                            It's only a big deal the first few times.
                            After a while you can make the decision without any drama.
                            As Tony says, you're never going to get it right.
                            I say, if that's the case then don't sweat about it.

                            Comment


                            • Originally posted by Wuket View Post
                              Cheers

                              I am also thinking maybe just 100% at 3 years. If the peak is 2018 then having 100% come off two years prior to that in 2016, rather than 50% in 2016 and 50% in 2017 might be better. Depends on risk appetite I suppose.

                              Thanks for the feedback
                              Sounds like you will be coming off fixed at just about the right time to tear your hair out worrying about what to do next.

                              Comment


                              • Originally posted by Wuket View Post
                                Can't believe what a massive decision this is (could cost you thousands if you get it wrong) and every single homeowner, no matter how financially astute, or not, has to do it!
                                Change the loans to a few million and the decision gets even bigger - think about it as you grow your portfolio.

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