Interest Rates

[Bluekiwi]

I mucked around something terrible, having a go at selling it, its 10 bedrooms.
And in the end I was glad it didnt sell, as I love the property.
So am keeping it, as it didnt sell, and also once the motorway through Mt Albert goes ahead, it will rocket ahead in value.

[eri]

thanks for rounding out the story

[Rosco]

Saving thousands in interest

Have you talked to your bank or broker about getting a better interest rate yet?

I just talked to a client today who has around $730,000 debt, all floating at 5.75%. Whereas other clients of ours are paying around 5% floating or fixed for 1 year. If this client could get 5%, that would save them $5,475 over the next year!!

If you are floating with Westpac for rental properties, their standard floating rate is 6.24%, so if you are paying this much then you really need to discuss getting a better rate. It could save you over 1%!

Just thought this is a timely reminder as it still seems that most home owners and property investors are still paying the standard rate, whereas they should easily be able to save 0.5% which can easily add up to thousands per year.


Ross

[Maccachic]

If you are fixed you may get break fees covered. It will end up costing me approx $500 to switch banks - Im currently fixed at 6.2% with Westpac.

But will save a lot more over the course of my fixed term by moving as I will keep repayments at current level, total money (floating at 5.44) will reduce interest rate when offset against our savings, and have been offered 1 year at 4.95%.

My broker hasn't been helpful so arranged deals my self with both my banks, lower floating rate with National.

[GenY]

The advertised retail interest rates at the banks are the "chump rates" as my mortgage broker friend calls them. Always negotiate hard with your bank(s) but NEVER threaten to leave . ASB gives me 0.75% off the standard floating rate and 0.25-0.35% off their 2-3 year rates. Doesn't sound much but in the above example of $700K + thats alot of money for the banks as profit.........

[Bricks & Mortgages]

I do one on 1 consults for customers and a recent investor I was able to show her how to improve her cash flow by $22,700 in 9 months but just revisiting her interest rates on her loans and also making sure the right debt is being repaid first. I believe there will be many people sitting on the carded floating rate allowing the bank to make a better margin on their lending.

Beryl Colley Bricks & Mortgages

[PC]

With the NZ$ so high - maybe rates will need to be dropped some more?

[King13]

Time to review our loans with BNZ. Our current rates are:
- Total Money= 5.74%
- Floating= 5.99%
- 2 year Fixed= 5.10%

Any advice appreciated.

[north shore]

with some arm twisting we got our floating mortgages down to 5.24 with westpac from 5.74 which was already discounted from 6.24.

[SwissKiwi]

Always negotiate hard with your bank(s) but NEVER threaten to leave .

Why not? I mention I'm considering leaving every few months!

King13

Time to review our loans with BNZ. Our current rates are:
- Total Money= 5.74%
- Floating= 5.99%
- 2 year Fixed= 5.10%

Any advice appreciated.

Get 5% on floating - 5.99 is crazy - if they say no - tell them there are plenty of other banks etc.

[props4u]

with some arm twisting we got our floating mortgages down to 5.24 with westpac from 5.74 which was already discounted from 6.24.

i too was offered 5.24 by bnz but only after complaining and expressing dissatisfaction ... havent yet accepted it ... big question is how can one twist their arms ??? ... how can i do it? by prolonging dialogue and complaining some more or what exactly?

strangely ... one PI with substantial portfolio and whom am aquainted with reasonably well, referred me to his broker who in turn offered me 5.4 ... how strange i thought, a broker can't beat what i've already been offered (5.24), very strange, how come? ... meanwhile said PI told me he has all his on 5.0 floating ... am scratching my head !!!

someone's not revealing their trade secrets, how to twist arms

[Davo36]

I agree, I am refinancing at the moment and have been offered 5.72%.

Now this is a lot better than my current fixed position, but still not nearly as low as some people here seem to be getting. And I'm only leveraged to 40%, so there's heaps of equity...

Going to have to try harder...

[mrsaneperson]

i too was offered 5.24 by bnz but only after complaining and expressing dissatisfaction ... havent yet accepted it ... big question is how can one twist their arms ??? ... how can i do it? by prolonging dialogue and complaining some more or what exactly?

strangely ... one PI with substantial portfolio and whom am aquainted with reasonably well, referred me to his broker who in turn offered me 5.4 ... how strange i thought, a broker can't beat what i've already been offered (5.24), very strange, how come? ... meanwhile said PI told me he has all his on 5.0 floating ... am scratching my head !!!

someone's not revealing their trade secrets, how to twist arms

Give Equilibrium of Kiwibank , a regular commentator here a call on 0800 452013 he knows how to twist arms to get you the best deal going guaranteed!

[props4u]

.

There was a difference between Kiwibanks RC and Total money and I have forgotten what it was?

Is it that you can have many different accounts / peoples accounts tied into the loan?

your post ashe seems to have been missed ... i too don't know

does anyone here know answer ... pletty pleeeease ?

.

[Rosco]

We have lots of clients now paying 5% floating or even under 5% fixed for 1 year.

I suggest talking to a good broker! That is what most of our clients do.

Ross