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  • ASB & Bank Direct put up rates up

    ASB 3 (6.15%), 4 (6.55%), 5 (6.75%) year rates all up this a.m. ASB 5-year rate has gone up by .8% in just three (?) weeks.

    Bank Direct 5 year rate now up to 6.7%.

    We have potential for 5 year rates to hit double digits by the end of this year, IMHO.
    Patience is a virtue.

    Comment


    • This might well be the bottom of long term rates, but of course only time will tell.
      I chose to fix a handful of loans at 6.5% for 5 years yesterday just after the OCR announcement. Was planning to wait until around mid year, but didn't want to risk it any more.
      High resolution Fractal Art on quality canvas: www.FractalArt.co.nz

      Comment


      • BNZ have dropped their floating rates.
        "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

        Comment


        • Hi Essence

          I'm curious as to why you feel rates will rise, despite the doom and gloom international economic forcasts. I may be wrong here, but don't rates usually decline as the economy worsens and loan applications decline? Simple market economics tells me that banks would need to compete in order to secure the fewer remaining mortgage applicants. Obviously I believe lending criteria will tighten, and I think a 25-30% deposit is well within reasonable speculation. I just don't see the recent [small] jump in fixed rates as anything but a spike. Furthermore, what other investments are banks making that net them such high returns at present? Many funds are receiving horribly negative returns (2 thirds of KiwiSaver funds, for instance). Home loans seem like a bread and butter investment, and I don't see them killing the market to gain another percent. It seems you may feel that the recent housing slump would offset the market downturn. I just don't see it. It doesn't matter how cheap housing becomes if no one can afford repayments. I think the recession has a very long way to go before it's entirely played out. Several very large US banks and investment companies (that are "too large to fail") need to fail, taking with them considerable equity and a huge government deficit - trillions of dollars. The contraction and adjustment alone will send shockwaves internationally.

          Or am I just being a tinfoil hatter?

          I'm sorry if this seems off the mark. It's my own brand of armchair market strategy and I'm probably not as versed as most of you are. I'm genuinely interested to understand this supposed abhoration of the market.

          Comment


          • Hi GarethB

            Welcome to PropertyTalk!!

            I've opened up a new thread and have endeavoured to answer your question there.
            Patience is a virtue.

            Comment


            • Westpac have raised 3, 4 and 5yr rates to match ASB.
              "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

              Comment


              • I've just got some rate lock agreements in place for our BNZ loans, which means we'll get at least 6.79% fixed for 7 years, or if the 7 year rates drop within the next 60 days, we'll have to pay a small fee but get the cheaper rate.

                The fee is only $250 bucks, which means that if rates only drop 0.1% we save even more money.

                These loans were high 8's last year, so nice to be saving about 2% over those rates.

                Comment


                • shop around guys I can get fixed 5 years at under 6% (only just 5.9 )

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                  • You're a tease!

                    Comment


                    • I don't think he is teasing at all. I am still floating mine for a while yet.

                      Comment


                      • He's teasing because he hasn't said where.
                        Well come on then Terry, where, how, what, who?

                        Comment


                        • lol it's called zigarnet marketing outspoken.

                          you now have to join my mailing list ....just kidding.

                          ANZ have special packages with 5 years at 5.9%

                          Comment


                          • What's new at ANZ

                            http://www.anz.co.nz/personal/Home-L...new/Lo-Doc.asp

                            Or you can go hear and watch Bill Ralston, Angela D'Audney and Rob Muldoon talk about cheap interest rates for first home buyers, housing finance drying up, black market mortgages, and taking out several seperate loans to the money you want.

                            http://www.youtube.com/watch?v=rBCMq-gBPw4
                            Last edited by dandan; 21-03-2009, 10:58 PM.

                            Comment


                            • ANZ and Nat have raised 3, 4,and 5yr rates to match Westpac

                              BNZ has also raised some rates.

                              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

                              Comment


                              • Originally posted by muppet View Post
                                ANZ and Nat have raised 3, 4,and 5yr rates to match Westpac

                                BNZ has also raised some rates.

                                See them at http://www.interest.co.nz/mortgages.asp
                                Banking consultant just told us rates are going up (as stated above) tomorrow. NAT Bank that is.

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