Interest Rates

[Maccachic]

Its sad that people feel they have to get into debt for what is essentially a retail invented shopping occasion. I look at the people trying to keep up with mates and relatives and feel sorry for them that they feel they need to have stuff to be happy (or to pretend to be).

BNZ gives mortgage rates on its CC if you have a home loan with them - way of working the deposit restrictions I think

[BigDreamer]

http://www.nzherald.co.nz/property/n...ectid=11386551

Mortgage wars: Banks prune interest rates

Banks have started cutting interest rates as the busy house-hunting season heats up.
From today, mortgage holders and prospective home buyers with at least 20 per cent deposit are being offered a three-year fixed home loan rate of 5.59 per cent at BNZ, down from the bank's previous three-year rate of 5.99 per cent. Kiwibank also cut its two-year rate by 20 basis points to 5.55 per cent. According to industry experts, consumers should expect better deals from other major banks soon.
...

[Eugene]

Rates have indeed come down further, have just been presented with very sharp rates

[Hound]

Good to see them pushing out the terms on their specials. Must mean the banks believe they will stay low for a wee while yet. I couldn't possibly comment.

[donthatetheplayer]

What are the best 3,4,5 year rates people are getting at the moment? 5.59% for 3 years is looking attractive. Is anyone getting better?

[PTILoveYou]

What are the best 3,4,5 year rates people are getting at the moment? 5.59% for 3 years is looking attractive. Is anyone getting better?

The radio ad for BNZ indicated a $2000 cash bonus with the 5.59% for 3 years.

I think the cash bonus part is a bad deal, very bad.

[Wayne]

I think the cash bonus part is a bad deal, very bad.

Why?
You don't like cash or not enough?

[donthatetheplayer]

I think the cash bonus part is a bad deal, very bad.

Not enough? I've got an offer for $5,000 cash bonus which I thought was a good deal, very good.

[PTILoveYou]

Why?
You don't like cash or not enough?

$2k is peanuts.

[Wayne]

But will you all be crying in a years time if rates are so much lower?
3 years is a long time.
There is a reason the banks are pushing the longer terms.

[PTILoveYou]

Not enough? I've got an offer for $5,000 cash bonus which I thought was a good deal, very good.

I have a friend who refinanced $1.5mil of mortgages to Westpac last year, and he got $13,000 cash back!

BNZ offered him $13,600 for the same mortgage this month, but Westpac is charging him $7k break cost (my friend he fixed for 2 years at 5.85%.......), PLUS the $13k cashback back since he didn't stay for 2 years.

[Wayne]

but Westpac is charging him $7k break cost (my friend he fixed for 2 years at 5.85%.......), PLUS the $13k cashback back since he didn't stay for 2 years.

And fair enough too!

[donthatetheplayer]

But will you all be crying in a years time if rates are so much lower?
3 years is a long time.
There is a reason the banks are pushing the longer terms.

What would you do? I fixed everything at 6% last year for 4 and 5 years. I'm not crying yet but I am scratching my head.

[Wayne]

What would you do? I fixed everything at 6% last year for 4 and 5 years. I'm not crying yet but I am scratching my head.

what would I do?
I gave up!
Well not really. Last was fixed for a year and comes up again in September.
Others were fixed for 3-5 years so aren't due for a bit - like you I am scratching my head but what is done is done.
I have one with another bank coming up in May and the other bit of it in November - looking to possibly bringing that back to my main bank and see what they will offer for another $520k.

I have learnt that whatever you do you will be wrong (on some) so just do it and get over it.
Shorter term still seems best to me - 1-2yrs.

[donthatetheplayer]

There's not much in it for the 1, 2 and 3 year rates right now. Hence thinking the 3 year is looking good. I'm a bit risk averse and like certainty for longer periods of time.