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  • Originally posted by Tucker View Post
    In the 90's Badger when it was time to lower the rates they were too slow and didn't drop by enough, when they did drop it it was too late. It wasn't me that said this but the RB head himself in an interview.
    so how does negative1% work Tucker? Id like to know...


    • I think you're onto something there Eri.

      IMO the government has already started subtly changing average Kiwis from borrowers to savers, with the introduction of KiwiSaver. The process is going to continue.

      I can see the benefits for NZ - lower interest rates, more available investments, increased productivity, keeping business in NZ. They would much rather the average kiwi put their money into funds, schemes and shares rather than direct property investment.

      Eventually, there will be less "mum and dad" property investors, so professional investors will be doing even better. The "mums and dads" will just keep working to pay their fund managers fees...

      Originally posted by eri View Post
      for that to happen the banks would have to stop having to raise their money from overseas

      which would mean they would have to get it from nz'ers

      which would mean more nz'ers saving instead of borrowing

      which would require something of a mindset change of the national psyche from "property is best"

      so the only way we'll get low mortgage rates is if families decide the only need 1 house each


      • You wouldn't be trying a little satire, now, would you?
        Want a great looking concrete swimming pool in Hawke's Bay? Designer Pools will do the job for you!


        • More rate drops by ASB, BNZ And Bank Direct.

          See them at http://www.interest.co.nz/mortgages.asp
          "There's one way to find out if a man is honest-ask him. If he says 'yes,' you know he is a crook." Groucho Marx


          • Yes. It's just the way it is, or perhaps the way it is going to be...

            2 year rate is now in the 5's. How much longer until the 5 year rate hits 5.99... I bet there will be more than a few takers when it gets to that point.


            • Low rates defeat kiwi saver...


              • Originally posted by Badger View Post
                Low rates defeat kiwi saver...
                . . . which is why property is so good, right?
                Want a great looking concrete swimming pool in Hawke's Bay? Designer Pools will do the job for you!


                • yep,

                  cavet... "dont keep all your eggs in one basket"


                  • Kiwibank drops rates

                    After today's 1.5% OCR drop, Kiwibank is the first Bank to drop their rates.

                    Floating now 6.49%.

                    Rest of rates here.

                    Press Release from KiwiBank

                    Press Releases

                    Kiwibank cuts all mortgage rates


                    Kiwibank has responded to the cut in the Official Cash Rate by the Reserve Bank by cutting all home loan rates. The bank’s lowest rate is the key one-year fixed term which has been reduced to 5.69% p.a.

                    Other major rate cuts by Kiwibank include the two year being reduced one per cent to 5.99% and the variable rate by 0.50% to 6.49%.

                    Kiwibank has already cut its rates twice this year with Chief Executive Sam Knowles expressing determination to keep leading the market. “The last year has been extremely volatile with fixed and variable rates pushing up to and beyond 10%. Now there is some relief in the market and Kiwibank is pushing through the savings for borrowers as quickly as possible.”

                    The rate changes by Kiwibank are: Variable down 0.50% to 6.49% p.a.; six month down 0.50% to 5.99%; one year down 0.30% to 5.69%; two year down 1.00% to 5.99%; three year down 0.50% to 6.49%; four year down 0.30% to 6.69%; five year down 0.10% to 6.89%. the cuts are effective immediately (in two weeks for existing variable home loan customers).
                    The only rate to have more than 50% of the 1.5% drop is the 2 year rate.
                    Last edited by essence; 29-01-2009, 10:39 AM.
                    Patience is a virtue.


                    • Has anyone noticed National's rates? They've had 1 year rate at 6.99, and 2 year rate at 7.00 for a while now - what's one to make of that?


                      • National often seem to lag behind in lowering their rates. Fortunate when I just managed to break 5 fixed loans with them this morning in time before the rate cut.
                        I do think they will follow suit with cutting rates though, when the other major banks force them to do so.
                        High resolution Fractal Art on quality canvas: www.FractalArt.co.nz


                        • ...having a reasonable cash surplus in the bank, I can say that my cash will be departing the game and heading out of this system...

                          Saving is a pointless exercise...naturally kiwi saver and anything else that rely's on interest is also a waste of time. Its dead money waiting to be pillaged by those in the know...

                          Inept banking policy that fits with the junk houses constructed...


                          • Sometimes they are a bit slow to drop rates plus remember some lenders dropped their rates this and last week anticipating an OCR drop. Interesting to see what happens.
                            Last edited by Tucker; 29-01-2009, 11:35 AM.
                            Nigel Turner


                            • Westpac are usually the slowest to drop their rates and when they do it is usually notified after 5pm at night.
                              "There's one way to find out if a man is honest-ask him. If he says 'yes,' you know he is a crook." Groucho Marx


                              • ...a lack of capital and more debt! Cheap credit + interest pumped into the system.

                                Unfortunatly spending your way to wealth dosnt seem to work. If it did Zimbabwe would be the richest country on planet earth...

                                So being a champion of low interest rates Tucker, how does a neg real interest rates work?