Interest Rates

[brokerman]

Agreed and the Fed looking at early 2017 which is why five year money here not coming back.

[Bluekiwi]

Agreed and the Fed looking at early 2017 which is why five year money here not coming back.

That is what is happening, is that how you explain the drop in the 5 year rate in the last 3 to 6 months.
Or is it oil and inflation dropping so far that the lower for longer concept is affecting them.

I was about to fix a large chunk for 5 years, about a month back brokerman as I thought the same as you.
But the 5 year fixed rate have gone even lower, and i dont think those 5 year rates are going to rush back all of a sudden especially with stock markets tanking and oil plunging.

In late September after the next OCR reduction, I am thinking could be the time to fix 5 years.
Not huge difference now between the amazing 2 year rate and the discounted 5 year rate some people are quoting here.

[Afghan Monster]

I'm getting offered

On 28.5k 4.6% for one year or 4.65% for two.

On 154k 5.5% for five. Breaking from 5.99% at $100. I'm a little undecided on it.

[Hound]

The big banks are holding rank, until one breaks off in the name of competition. Then the others will follow based on the terms of the first mover. I have a mill coming up in November & others...what to do? I usually get a good deal, will expect the best this time around.

[brokerman]

That is what is happening, is that how you explain the drop in the 5 year rate in the last 3 to 6 months.
Or is it oil and inflation dropping so far that the lower for longer concept is affecting them.

I was about to fix a large chunk for 5 years, about a month back brokerman as I thought the same as you.
But the 5 year fixed rate have gone even lower, and i dont think those 5 year rates are going to rush back all of a sudden especially with stock markets tanking and oil plunging.

In late September after the next OCR reduction, I am thinking could be the time to fix 5 years.
Not huge difference now between the amazing 2 year rate and the discounted 5 year rate some people are quoting here.

I have yet to see concrete evidence of the rates some people seem to have got for five year term. My comments are based on a meet last week with several Bank economists discussing short and long term rates. Anything under 5.5% for five has got to be good!

[Bluekiwi]

I have yet to see concrete evidence of the rates some people seem to have got for five year term. My comments are based on a meet last week with several Bank economists discussing short and long term rates. Anything under 5.5% for five has got to be good!

When you have a 2 year carded rate at 4.89 that can be discounted to 4.4 you would need a pretty good 5 year rate to compete.

Wasnt SBS at 4.99% for 5 years at one point ?

I am thinking if I can get 4.99 to 5.3% for 5 years then I will take that in September.
Otherwise 4.4% for 2 years trumps that - maybe

[brokerman]

When you have a 2 year carded rate at 4.89 that can be discounted to 4.4 you would need a pretty good 5 year rate to compete.

Wasnt SBS at 4.99% for 5 years at one point ?

I am thinking if I can get 4.99 to 5.3% for 5 years then I will take that in September.


Otherwise 4.4% for 2 years trumps that - maybe

Yep the SBS deal came and went, many happy campers got it and a lot more didn't as the criteria was, shall we say, pretty harsh.

5.3% for five gives a good stable platform to go from, we recently did this on a couple of rentals, one more thing not to have to think about for a while.

[Wayne]

one more thing not to have to think about for a while.

But people do (think about it) - then they want to break.

[brokerman]

But people do (think about it) - then they want to break.

That they do and then get shirty when the Bank charges a fee!

[Maccachic]

BNZ matched the SBS deal for me (5 years 4.99%) - was pretty happy at the time then rates started falling, managed to get 1% discount on total money floating rate,- think over 5 years I should still win hopefully but with baby #1 due Nov fixed repayments are useful

One more to sort in the meantime was offered 4.69% for 1 or 2 years but hoping for lower yet, ill give it a month and then re neg..

[Neongreen]

BNZ matched the SBS deal for me (5 years 4.99%) - was pretty happy at the time then rates started falling, managed to get 1% discount on total money floating rate,- think over 5 years I should still win hopefully but with baby #1 due Nov fixed repayments are useful

One more to sort in the meantime was offered 4.69% for 1 or 2 years but hoping for lower yet, ill give it a month and then re neg..

A little birdie told me you should have no problem asking for 4.49% for 1 or 2 years

[PTILoveYou]

refixed 390k out of 1.2 with westpac at 4.49@1 year

[brokerman]

A little birdie told me you should have no problem asking for 4.49% for 1 or 2 years

a larger birdie just got 4.49% for 3 years!

[PTILoveYou]

a larger birdie just got 4.49% for 3 years!

I'm expecting rates to drop more =)

[aay]

ANZ doesn't seem to be giving good rates. Lowest 4.6% for 1 year.