Interest Rates

[speights boy]

our $ dropping will be part of that

Indeed, increasing inflation along the track.

[Perry]

$2.05 in Whakatane,
late this afternoon.

[drelly]

Drelly Fishers Jewellers is fabulous and there's only one shop. You haven't been dragged there yet? :-)

I'm not into jewellery but my wife is. I try to keep her out of places like that!

[flyernzl]

Fishers is where Michael Hill started his working life.

[eri]

brit base rate - 0.5% likely to stay there for some time

oz base rate - 2% for the next few years the only way is down

nz base rate - 3.5% what do you think?

[Wayne]

nz base rate - 3.5% what do you think?

If they find a means to discourage investors buying in Ak down a quarter at the next review
If they don't it will be a couple of reviews away.

[Bluekiwi]

5.2% 5 Years with BNZ
Large mortgage.

Relatively small nett fee to break and re-fix existing mortgage.
Broke 2 years into an existing 5 year fix.

Save about 22k a year.

Note: Fixing ahead of any RB MP tools coming out this year, and before an improving US economy affects longer term rates.

[chrisgoh]

With the new rules in place for property investors, RB set to reduce OCR next month?

[Bluekiwi]

With the new rules in place for property investors, RB set to reduce OCR next month?

From what I have deduced.

OCR only influences short term rates mostly.
The long term rates here in NZ are dictated by US rates.

So I can only see increasing long term rates when the RB forces banks to keep more capital for property investors, mid to end this year.

And I know we have heard this many times.
But several of the key economists are predicting that those US rates will possibly start rising latter THIS year.

[Wayne]

With the new rules in place for property investors, RB set to reduce OCR next month?

I think they will.
They really want to but are worried about the affect it would have on the Auckland property market.

Long rates will probably increase when the Fed finally does start buying their money back (removing the money they pumped in over the last few years).
They seem to be having fits and starts on this.

[Wayne]

5.2% 5 Years with BNZ
Large mortgage.

Relatively small nett fee to break and re-fix existing mortgage.
Broke 2 years into an existing 5 year fix.

Save about 22k a year.

So I have just been looking at this.
Westpac - break 4 years at 6.9 and saving over 4 years is only $9k, seems worth it
3 years at 6.69% and saving only $2k - marginal really.
I get the impression they don't want me to break!

[soundslegit]

Just got 5.4% 5 years BNZ and 4K cash back to cover break fee.

[Wayne]

I'm not moving unfortunately so they won't cover their own break fee.

[soundslegit]

This was their own break fee. BNZ paid me 4K as a loyalty bonus, broke the loan, (break fee $3200), and refixed at 5.4% from 6.18.
Go figure......

[soundslegit]

And it was all thanks to this forum. I sent them some examples from this thread because they told me they NEVER waive break fees.
After showing them what property talk people were getting we got a different result. Much gratitude to whoever started this forum.