Interest Rates

[MAXNZ]

Go to www.interest.co.nz for rate comparisons

Thanks. This website gives rates that banks advertise publicly on their websites and got nothing to do with the rates you negotiate with the bank direct or through the broker. I could compare how much of a drop I have been offered comparing to the rates the place publicly advertises and assume other institutions could match.. but that would be more of a speculative than a proper approach

[Wayne]

have been offered

5.99 revolving
4.89 fixed 1 year
5.00 fixed 2 years
5.10 fixed 3 years
6k cash contribution (for bringing over 2 properties)

do these sound good considering drop in the OCR?

Are you expecting the longer term rates to change because the OCR dropped?

[MAXNZ]

Are you expecting the longer term rates to change because the OCR dropped?

If we're going to see 2 OCR drops in the next 6 months it should bring at least 0.5-3 year rates down across the board. Not so sure about 5-10 year rates.

[Wayne]

If we're going to see 2 OCR drops in the next 6 months it should bring at least 0.5-3 year rates down across the board. Not so sure about 5-10 year rates.

Why given that the OCR should reflect in on-call money (floating) whereas longer term comes from either deposits or overseas?

[PTILoveYou]

Why given that the OCR should reflect in on-call money (floating) whereas longer term comes from either deposits or overseas?

Floating to 2 year rates depend on local NZ rates, like OCR.

3 to 5 year rates depend on the overseas wholesale interest rates.

[MAXNZ]

Why given that the OCR should reflect in on-call money (floating) whereas longer term comes from either deposits or overseas?

historical observation

[Wayne]

Floating to 2 year rates depend on local NZ rates, like OCR.

3 to 5 year rates depend on the overseas wholesale interest rates.

Must have changed recently

[brendan]

have been offered

5.99 revolving
4.89 fixed 1 year
5.00 fixed 2 years
5.10 fixed 3 years
6k cash contribution (for bringing over 2 properties)

do these sound good considering drop in the OCR?

Can you give ballpark of loan size? 500k, 1mil, 1.5mil, 2mil?

[MAXNZ]

Can you give ballpark of loan size? 500k, 1mil, 1.5mil, 2mil?

About 1 mil

[eri]

Westpac will reduce its floating rate to 6.4 per cent and its Choices Everyday rate to 6.5 per cent from Monday for new customers and from June 29 for existing clients.

However, deposit rates had also moved, with all personal online savings accounts reducing by 25 basis points, a spokeswoman said.

Meanwhile, BNZ announced a cut to its floating rate of 40 basis points in response to yesterday's OCR drop.

The interest rate on its floating home loan product, TotalMoney, will fall from 6.74 per cent to 6.34 per cent.

It will also trim 25 basis points on three other mortgage products - standard variable, Rapid Repay and Mortgage One.

BNZ retail and marketing director Craig Herbison said new customers would be eligible for the new rates from tomorrow and existing customers from June 28.

There were no immediate plans to cut term deposit interest rates.

"The cut to our TotalMoney rate is deliberately greater than the decrease in the official cash rate.

The Reserve Bank has indicated another rate cut is on the cards and we're boldly anticipating that change with this competitive rate cut.

http://www.nzherald.co.nz/business/n...ectid=11464316

[JBM]

So after ringing and prodding them for a reply, Westpac has offered 5.29 for 6 months fixed and $3000 towards the break fees
Also have to sign something to say we will stay with them for 2 years

Yes I'm likely to go with Westpac (moving from ANZ) had to also stay with them for 2yrs ...but only on a smaller 150k loan was offered 5.08% last week ...but haven't signed up just yet hoping too see that rate least 5% -4.9%

Bigger 400k loan have been offered 6months fixed 5.1% ...not sure if I'll get much movement on monday ....also getting $3500 cash + no fees on 2x Airpoints CC = $200

[brendan]

About 1 mil

Thanks, which bank?

[BigDreamer]

have been offered

5.99 revolving
4.89 fixed 1 year
5.00 fixed 2 years
5.10 fixed 3 years
6k cash contribution (for bringing over 2 properties)

do these sound good considering drop in the OCR?

All look like great rates. Well done!

Which bank?

[tulips]

Yes I'm likely to go with Westpac (moving from ANZ) had to also stay with them for 2yrs ...but only on a smaller 150k loan was offered 5.08% last week ...but haven't signed up just yet hoping too see that rate least 5% -4.9%

Bigger 400k loan have been offered 6months fixed 5.1% ...not sure if I'll get much movement on monday ....also getting $3500 cash + no fees on 2x Airpoints CC = $200

DONT FIX if not that risk adverse ! More likely hood of OCR dropping and dropping.

We could even see 1 to 2% rates like overseas - no one knows !

[JBM]

DONT FIX if not that risk adverse ! More likely hood of OCR dropping and dropping.

We could even see 1 to 2% rates like overseas - no one knows !

Yeah Unlikely though ....NZD cannot command a Euro or USD low rate we are tiny... Our entire GDP is less than Apples revenue p.a ....If our RBNZ did keep just droppin the rate to zero like the FED ....we wouldn't be able to pay our bills as NZ like many nations runs deficits every year meaning we as a nation spend more than we take in Taxes and that money must come from... other nations that will only loan such a small nation at higher rates ....

Really Apple corporation is doing much better than NZ as a whole and could borrow money much cheaper than NZ