Interest Rates

[Equilibrium]

Only a few months back 4.99% fixed for 3 years looked like an appealing interest rate whereas now 5.99% fixed for 3 years (minimum 20% equity requirement) is a market leading offer from Kiwibank for the same advertised period, changing times!

[mortgage broker]

Only a few months back 4.99% fixed for 3 years looked like an appealing interest rate whereas now 5.99% fixed for 3 years (minimum 20% equity requirement) is a market leading offer from Kiwibank for the same advertised period, changing times!

And people are still not fixing long term - human nature is amazing

[Bluekiwi]

Only a few months back 4.99% fixed for 3 years looked like an appealing interest rate whereas now 5.99% fixed for 3 years (minimum 20% equity requirement) is a market leading offer from Kiwibank for the same advertised period, changing times!

Yes that published rate of Westpac of 5.75% for 5 years was music to my ears

Now Westpac say (just this week), that both floating and longer term rates are much of a muchness reflecting where rates are expected to go.

[Bluekiwi]

And people are still not fixing long term - human nature is amazing

Yep I am still buying and still fixing 5 years at 6.6%.

[Equilibrium]

And people are still not fixing long term - human nature is amazing

Indeed. The figures suggest about 55% of loans are now fixed so still some with leverage to hunt around and secure a good deal (fee free banking/discounts/vouchers/cash/TV's/Ipads etc)!

[eri]

You were right re the spring specials.
ASB's 6 month rate increases by 60 basis points.
They have also raised their Term Deposit rates.

ASB mortgage rate changes

raising TD rates encourages saving

always a good thing

[Bob Kane]

And people are still not fixing long term - human nature is amazing

Yup - I'm still floating.

[speights boy]

Yup - I'm still floating.

Good onya Bob.
That will be music to the Governor's ears.

OCR set to rise but extent still unclear

But the question was, he said: "What average might we expect interest rates to head towards when we do eventually start to increase the OCR, and when would we expect to reach that level?"

He did not answer the question directly, instead choosing to expound on what he called the "neutral interest rate", which he defined as the rate which would neither stimulate nor restrict the economy.

McDermott said: "Our projections suggest the level of the nominal 90-day interest rate that achieves this is about 4 per cent."

FYI: 90 day currently is 2.65%

[speights boy]

John Key has a big problem for an election year.

LVR restrictions; plus he has been told rates will rise unless these restrictions bite.
Meanwhile, every day cashed up new migrants and non-resident foreigners buy existing properties without restrictions.

NZ dollar jumps after Wheeler warns rates may rise more rapidly if LVR limits fail

[drelly]

John Key has a big problem for an election year.

LVR restrictions; plus he has been told rates will rise unless these restrictions bite.
Meanwhile, every day cashed up new migrants and non-resident foreigners buy existing properties without restrictions.

NZ dollar jumps after Wheeler warns rates may rise more rapidly if LVR limits fail

Wheeler is bluffing!

[speights boy]

Wheeler is bluffing!

you would not be alone in that opinion.

However:
I've played enough poker to learn one important lesson.

If you are looking around the table wondering who the patsy is.............
.........you're the patsy.

I've covered my bets, so I'm merely a very interested spectator.

RBNZ sees mortgages at 8pc

[flyernzl]

Have just be offered refinance on an existing interest-only:

6 months: 4.95%
1 year: 5.19%
18 months: 5.59%
2 years: 5.75%
3 years: 6.30%
4 years: 6.70%
5 years: 6.90%
Floating rate: 5.54%

[Orpheus1]

Have just be offered refinance on an existing interest-only:

6 months: 4.95%
1 year: 5.19%
18 months: 5.59%
2 years: 5.75%
3 years: 6.30%
4 years: 6.70%
5 years: 6.90%
Floating rate: 5.54%

those are terrible rates! Glad I fixed a couple months ago.
who know's where they'll be in a year though...

[Bob Kane]

"BNZ raises all fixed mortgage rates for terms of 3 to 7 years aligning them with rivals, despite declining wholesale rate pressure"
http://www.interest.co.nz/property/6...s-despite-decl

This might be the last chance for people to fix long term at a high rate.

I'm with you, dandan.
There's a mass media campaign going on to spook everyone to lock in for a long term.

[mortgage broker]

Could be Bob, but sometimes this can become a self fulfilling prophecy, if this is the case lets hope it does not last till underlying wholesale rates move up drastically; leaving all of us in the hands of Mr Wheeler.