Interest Rates

[JBM]

Offered this today:

6 months 4.90%

1 year 4.00%

18 months 4.09%

2 years 4.19%

3 years 4.39%

4 years 4.90%

5 years 4.99%


If you scroll up a few posts you will see that a week ago if I fixed online directly with my bank I was offered some slight different rates?
Im sure this is normal but I am wondering if the bank is trying to encourage me to book the 1 and 2 year rates by offer a higher 6 month rate than a week ago?
Ive got 2.2m in lending with only a 107k loan which comes off a fixed rate in Sept 2019.
Im sure the bank would not want me to fix for 6 months and then have the full 2.2m to negotiate with...
They gave me a 3k cash back a year ago to lock in this 107k loan I mention above and the broker has said I will have to pay that back if I chose to move to another bank plus the lawyers costs etc etc.

Do you think i'm on the right track and if it were you would you wait it out on variable which for me is 4.9% so the same as the 6 month rate above. The idea being I would be in fantastic position to negotiate some cash backs or better rates with my current bank or move?

The risk being interest rates move up etc etc

Thanks

Murph

That is one out of wack 6 month fixed ... I agree bank is hoping to pushing you longer term on the smaller loan giving you less leverage .. I recently moved one loan to line up with another fixed term by floating it for a period

[Don't believe the Hype]

Im not sure but I wouldn't think it to much? Could be wrong....
There is the 3k which I acknowledged I'd pay back if I broke within the 18 months and Im not sure if thats pro-rated as its been a year in to that fixed rate...

find out the actual break cost. Then you can negotiate the full loan now with multiple banks including your current bank. If you’re not happy with the outcome float the small loan for 6 months and try to negotiate the total loan again then.

[Perry]

Six Months Later

Close! Closer than most, anyway.

[Hound]

HKSBC offering 3.69% for two years. Let's see how the other players react in the coming months.

[Perry]

Wasn't one of the others already offering 3.99% for 12 months?

[Hound]

Wasn't one of the others already offering 3.99% for 12 months?

Westpac's got a temporary deal on that one, Perry. HKSBC are offering it too. Waiting to see how ANZ responds.

[JBM]

Got another few more months till I have a couple of loans coming off 1yr 4.15% fixed terms JULY ... be interesting what deal WP will offer me ... 3.9% ?? 1-2yr fixed term

[Don't believe the Hype]

Got another few more months till I have a couple of loans coming off 1yr 4.15% fixed terms JULY ... be interesting what deal WP will offer me ... 3.9% ?? 1-2yr fixed term

i’ve heard the NZ banks will be implementing the Aus policies of charging different rates for OO and Investor rates. This will result in higher rates die investors. I’d be working to lock in a rate now.

[JBM]

i’ve heard the NZ banks will be implementing the Aus policies of charging different rates for OO and Investor rates. This will result in higher rates die investors. I’d be working to lock in a rate now.

Surely as long as your home value covers 80% of your outstanding debt (in property etc) one would still get RES loans and not charged higher investor/commercial rates

[north shore]

Westpac was muttering something about that late last year when we refixed a small one

[JBM]

Anyone signed up debt with HSBC at this 2yr 3.69% .... waiting on a callback...

[Don't believe the Hype]

Surely as long as your home value covers 80% of your outstanding debt (in property etc) one would still get RES loans and not charged higher investor/commercial rates

not commercial rates... it in Aus the banks hot rates (advertised rates) are for OO’s on P&I. If you’re an investor you pay more if you’re an investor wanting IO you pay more again. Check out some of the Aus rate comparison sites for what’s heading this way.

[JBM]

not commercial rates... it in Aus the bank's hot rates (advertised rates) are for OO’s on P&I. If you’re an investor you pay more if you’re an investor wanting IO you pay more again. Check out some of the Aus rate comparison sites for what’s heading this way.

My current commercial and Sharemarket loans interest only 1yr fixed 4.15%(JULY 1 bank manager at Westpac stated as long as I have Res equity I get RES rates ....fixed incomes from investment easierly cover interest costs

[Don't believe the Hype]

My current commercial and Sharemarket loans interest only 1yr fixed 4.15%(JULY 1 bank manager at Westpac stated as long as I have Res equity I get RES rates ....fixed incomes from investment easierly cover interest costs

that was the argument in Aus too... the rate should be based on the asset it was secured against.

They the did some rubbish analytics that suggested invertors were higher risk because in a downturn investors were more likely to cut their losses and bail than an OO who would do everything possible to hold onto their home. From memory they backed the analysis with the Irish property collapse data.

They then suggested that the risk of residential investors was higher than OO resulting in the regulators increasing requirement for the banks capital holdings driving up the cost of funding.

[JBM]

that was the argument in Aus too... the rate should be based on the asset it was secured against.

They the did some rubbish analytics that suggested investors were higher risk because in a downturn investors were more likely to cut their losses and bail than an OO who would do everything possible to hold onto their home. From memory they backed the analysis with the Irish property collapse data.

They then suggested that the risk of residential investors was higher than OO resulting in the regulators increasing requirement for the banks capital holdings driving up the cost of funding.

Right I've found some banks do think this way ..as we know banks are always reviewing commercial/investor lending practices ...from my dealings

ANZ-Westpac -base the rate on asset securing the new purchase ... if one doesn't have enough (safe residential equity) then I would need a valuation of my commercial equitity and new lending rates would be 7%+

But in talking with BNZ they did not .. and SBS wanted loan paid off within the fixed term in full aka 10yr fixed term one must pay principal payments + interest that would see the loan paid off in 10yrs