Interest Rates

[Wayne]

There's a suggestion from BNZ that our historic lows may be the new norm.
Perhaps we'll have even lower interest rates next year?

All this may well be true - or not.
The point is - how much are you willing to bet on it?
Taken in context the comment was made in relation to the 'internal servicing rate' going up in many banks - the rate they use to stress test a loan.
Banks don't want to bet the rates will stay low forever and neither should borrowers.
Take the low rates while they are there (and pay down debt) but plan to be in for the long term by being able to pay higher if they go up.

[shami]

I got 5.25% coming off in December. My mortgage broker called and said, he had negotiated a deal of 5.90% for 2 years with the same lender. Seems time to change the broker or I'll shop myself.

[elguapo]

Not flash given various banks are advertising 5.75% for 2 years.....

[eri]

meanwhile my bank rolled over my kids term deposits to only 2%pa

because they were under $10,000

so we closed both accounts, combined them to get over 10k and got 4.65%

furiously moving the goalposts means you have to keep checking everyone to ensure you are getting good value

this penalises the elderly and those with neither the time nor inclination to continually hunt for value

probably time to re access my mobile, internet + power companies again

[Neongreen]

Not flash given various banks are advertising 5.75% for 2 years.....

4.95% expiring in a month... Asked for 5.50% on a 2 year term. ASB messed me around for 2 weeks. Eventually told them I was going to change banks. Lo and behold the next day, they agreed. Only wanted 5.50 because my feeling is rates will/would drop and this will keep me on the winning side.

[Wayne]

Just reading the Westpac weekly commentary. They say
"Fixed mortgage rates have been falling recently, and may
have further to fall in the weeks ahead. Those looking to fix
their mortgage might find it is worth waiting a few weeks for
better rates."

[Judge]

4.95% expiring in a month... Asked for 5.50% on a 2 year term. ASB messed me around for 2 weeks. Eventually told them I was going to change banks. Lo and behold the next day, they agreed. Only wanted 5.50 because my feeling is rates will/would drop and this will keep me on the winning side.

This is very interesting Neogreen. What sort of business does one need to have with a bank to have such negotiating power. I asked Westpac of a margin off their current 5.75% special and they said its a special so nothing can be taken off this rate... Without telling us what you do not want to tell us, can you give us an idea of why ASB was so keen to keep your business? Was it something to do with the size or nature of your portfolio or are they generally this good to their customers?

[elguapo]

Kiwibank offering 5.99% for 5 years...
http://www.interest.co.nz/news/72799...s-rivals-setti

[PTILoveYou]

Kiwibank offering 5.99% for 5 years...
http://www.interest.co.nz/news/72799...s-rivals-setti

I'm seriously considering breaking the two loans I have with them @ 5.85% for 2 years and refix for 5 years!

[PC]

What ever happened to "fix NOW rates must rise"?

Guess they just keep on printing the stuff.

[BigDreamer]

Kiwibank offering 5.99% for 5 years...
http://www.interest.co.nz/news/72799...s-rivals-setti

WOW that is an impressive rate!!

[Bob Kane]

I'm seriously considering breaking the two loans I have with them @ 5.85% for 2 years and refix for 5 years!

I wouldn't.
I think interest rates in the future are more likely to go down than up.

[elguapo]

I wouldn't.
I think interest rates in the future are more likely to go down than up.

I tend to agree. The world is simply awash with cheap money.

[speights boy]

I tend to agree. The world is simply awash with cheap money.

And yet for similar terms, NZ banks are paying more for a Term deposit than some NZ corporate bonds are trading for.

[Neongreen]

This is very interesting Neogreen. What sort of business does one need to have with a bank to have such negotiating power. I asked Westpac of a margin off their current 5.75% special and they said its a special so nothing can be taken off this rate... Without telling us what you do not want to tell us, can you give us an idea of why ASB was so keen to keep your business? Was it something to do with the size or nature of your portfolio or are they generally this good to their customers?

I find Westpac less flexible. In the end I had to send a very blunt email to ASB telling them they were going to lose my mortgage over 1k worth of discounts. They give 3k to new customers so it should be a no brainer. I also pointed out that i met the BNZ lending criteria, and after moving would be better off.

My email was entitled 'customer retention', and I stated if I needed to apply to BNZ, I wouldn't entertain any further offers.

One needs to be strict but fair.