Interest Rates

[Nick G]

Define "normal times" :-) There always seems to be something happening.

I just got approved up to 1mil. Curious to see what rates I get offered by ASB if I get the place. I tend to go long. Pretty sure I'll come 2nd place in the beauty contest tho.

[Beginner1]

Banks were saying interest rates will go up for the past 7-8 years, just to get people to get into morgages fixing. So they can make money. Everyone to protect their interests. My theory is global economies are still stalling. So interest rates are higly unlikely to rise in a hurry. Saying this I have 50% of morgage fixed 3-5 years and rest on 1 year for the past 7 years. We all need some certainity and reduce risk to suilt your profolio. I had my first morgage fixed for 9.85% for 5 years in 2007. That time around I was 23 and had no idea of interest rates and property but just bought a property since everyone else was buying. Long live the current interest rates..

[Perry]

From 21 Nov 2016

Interest rates are going up very fast.

How's that prediction looking, six months later?

[Bob Kane]

For the last year or so I've been refixing every loan for the cheapest rate which has been the 1 yr option.
Can't see that it's been a mistake so far.

[Beano]

For the last year or so I've been refixing every loan for the cheapest rate which has been the 1 yr option.
Can't see that it's been a mistake so far.

Would you fix for one month if it was the lowest rate?

[Wayne]

Would you fix for one month if it was the lowest rate?

getting silly now - I'm sure you understand the concept Bob Kane was expressing.

[elguapo]

Define "normal times" :-) There always seems to be something happening.
I just got approved up to 1mil. Curious to see what rates I get offered by ASB if I get the place. I tend to go long. Pretty sure I'll come 2nd place in the beauty contest tho.

Be interested to see what they offer you, all I got was the headline rates.

[Anthonyacat]

I've just been offered their headline rates. The "Special Rates" listed on the website, rather than the "Standard Rates" - presently:
06 months 4.95% p.a.
12 months 4.45% p.a.
18 months 4.70% p.a.
24 months 4.74% p.a.
36 months 5.09% p.a.
48 months 5.49% p.a.
60 months 5.69% p.a.
These rates are valid for 48 hours.

[Anthonyacat]

Just thought I might add in what ANZ have sent me today about a refix. Small numbers, less than $500k.

Here are some discounted rates that we can offer:

Fixed - 6 months | 4.29%
Fixed - 1 year | 4.35%
Fixed - 18 months | 4.45%
Fixed - 2 years | 4.65%

This pricing offer is valid until COB 24/05/17

[JBM]

Just thought I might add in what ANZ have sent me today about a refix. Small numbers, less than $500k.

Here are some discounted rates that we can offer:

Fixed - 6 months | 4.29%
Fixed - 1 year | 4.35%
Fixed - 18 months | 4.45%
Fixed - 2 years | 4.65%

This pricing offer is valid until COB 24/05/17

Some great rates there might have to go talk with ANZ >> thinking about ditching westpac in july once my 2yr fix comes due

[mortgage broker]

[Judge]

How's that prediction looking, six months later?

That was not a prediction. That was a statement of fact which was correct at the time. The retes did jump and very fast.

[Beano]

For the last year or so I've been refixing every loan for the cheapest rate which has been the 1 yr option.
Can't see that it's been a mistake so far.

The cheapest rate is one month fixed 4.36pc
I have a portion on this rate but the bulk on 1 to 2 year fixed
You are right the lowest rate regardless of term is probably the best deal overall
I have chosen a fixed 2 year rate at 4.57pc as the risk is too great if the rate moves substantially
I sort of treat the extra cost as an insurance fee

[Beano]

getting silly now - I'm sure you understand the concept Bob Kane was expressing.

Hi Wayne I am not certain what you are referring to as silly (100pc on near floating?)
Being risk adverse i can't afford to have 100pc on the one month rate even though it is the lowest rate
It is all to do with the risk

[Beano]

Surprisingly (well to me) the one month interest rate has only moved from 4.21pc to 4.36pc since April last year.
Still very low
But principal repayment expectations and demands have increased substantially