Interest Rates

[Ivan McIntosh]

I know that Kiwibank will pay your costs (albeit they put the work through a contracted law firm rather than you using your own lawyers, but even that might be negotiable (they were willing to pay us $500 to do it)), and have no doubt that other banks would make a contribution to get some new business. I don't think your expectations are too high.

[essence]

Go direct to another Bank - ASB, KIWIBANK, whomever and interview the Bank person.

Tell them what you're thinking of swapping Banks because you're not getting the percentage rate from your Bank (explain MB).

Obviously if they want your business, they'll negotiate. You're getting bad service from your Mortgage Broker. I think (but am not 100% sure) that some MB's get what is call Trailers from Banks. As long as borrowers stay with the bank that the MB introduced (got business from), they'll keep on getting the Trailer ($'s).

So it's not in his interest to have you swap Banks because he'll lose his $'s. Remember if he has lots of clients staying put, he'll be racking him heaps of residual fees.

Make sure your MB understands that if he doesn't pull finger, he's going to lose you as a client - and anyone else you can talk to. Word of mouth is a powerful tool.

Actually, I'm really surprised by your MB's attitude. He should be working for you, not hindering you. Fire him!!!

[Maccachic]

Awesome thanks for the help!

[Scott Miller]

ANZ/National's response.

Floating Interest Rate	5.74% p.a.	No change
Flexible Interest Rate	5.85% p.a.	No change
Fixed Interest Rates
6 months	5.75% p.a.
1 year	5.79% p.a.
18 Months	5.99% p.a.
2 years	6.09% p.a.
3 years	6.45% p.a.
4 years	6.85% p.a.
5 years	7.25% p.a.

[essence]

Reserve Bank holds OCR at 2.5 per cent

08/12/2011

Official interest rates are expected to remain on hold until late next year according to some economists, after the Reserve Bank left rates unchanged at 2.5 per cent this morning.

ASB Bank economists said it expected official rates to stay on hold until December next year, even though the Reserve Bank's forecasts implied the first move in the September quarter next year.

Westpac said it expected the first rate rise in September.

The Reserve Bank has dropped any mention of rates rising in the future. ANZ economists said that was appropriate given it was hard to see the global situation improving any time soon.

But the hurdle to actually cut rates was "very high", ANZ said, and would depend on a much deeper global recession than assumed in the Reserve Bank's central scenario.

The bottom line was that the Reserve Bank would remain on hold "for a long time", ANZ said.

Deutsche Bank said a rate rise would come by the middle of 2012 "at the earliest".

If the central bank moved at any of its next few meetings, it would be to cut rates rather than increase them Deutsche Bank said, though the hurdle for a cut was "quite high".

http://www.stuff.co.nz/business/money/mortgages/6106168/Reserve-Bank-holds-OCR-at-2-5-per-cent

[drelly]

Glad I ignored all that rubbish the banks have been spouting for months about rates going up!

[mortgage broker]

Go direct to another Bank - ASB, KIWIBANK, whomever and interview the Bank person.

.......I think (but am not 100% sure) that some MB's get what is call Trailers from Banks. As long as borrowers stay with the bank that the MB introduced (got business from), they'll keep on getting the Trailer ($'s). ........

In the old days we mortgage brokers were paid trailer, or an ongoing income. Around 5 years ago all the banks stopped doing this for new clients. Brokers now only get an upfront commission from the bank. Brokers are rewarded if they move the client to new bank after the first 12 to 18 months. Within the first 12 to 18 months banks will charge the broker clawback fee if the client changes banks.

A broker can end up working for free if a client pays their loan off within the first year.

[Commercial Dan]

Rates are not going up for another 2 maybe even 3 years

[spaceman]

.....

A broker can end up working for free if a client pays their loan off within the first year.

C'mon......how often would that happen in the real world?????

Cheers
Spaceman

[Bluekiwi]

Rates are not going up for another 2 maybe even 3 years

One of mine went up yesterday ???

But this I assume CD is based on world wide depression next 2 or 3 years, fair enough.

But if things get quite nasty, our banks may find it harder to source funds and the cost of those funds will go up, and rates would then rise, regardless of OCR.

The other thing which contradicts you is the Reserve Bank and all the economists in NZ, who say that the OCR will start rising from latter 2012, and quite sharply, so that is only 1 year away, and not 2 or 3.

[Austrokiwi]

Deflation on the way?

http://www.marketwatch.com/video/asset/golds-drop-with-stocks-points-to-deflation-2011-12-13/D2E29E08-274B-4CA5-990B-BF63C0CA76AF#!D2E29E08-274B-4CA5-990B-BF63C0CA76AF

[muppet]

Kiwibank have thrown in a 5.99% rate for 4yrs.

[muppet]

Interest rate drops by ANZ and NAB today.
6mths 5.65%
1yr 5.70%
2yrs 5.79%

[Scott Miller]

Plus their 18 month rate down to 5.89% from 5.99%.

[JABlog]

ANZ National cut rates- ANZ and National Bank have both cut fixed rate home loans for terms of 6 months, 1 year, 18 months and 2 years