Interest Rates

[drelly]

I won't be surprised to see high 3's being offered by all the major banks early 2017 .....

Was speaking to a broker this morning who reckons that even at 4%, the rates are a loss leader for NZ banks.

[primal]

The only bank that can give better rates so far is kiwibank. They are always the first to drop the rate after ocr announcement.

[newbyvest85]

Hi guys,

Just wanted to ask if you will normally face problems in getting a bank's special rates (e.g. BNZ's 4.29% vs 4.85%) if you do not have salary directly credited to their bank's account? I will have a credit card with both the banks.

My 2 Home Loan providers are ANZ and BNZ.

Thinking of paying my salary into BNZ, and a rental payment to my ANZ account. Would that normally work for both BNZ and ANZ?

Thanks!

[EMScott]

Hi Guys and Girls,

Just looking at locking in 600k of lending again now after lots of stuffing around. Looking long term. 5years. What are people getting for 5years ? Is there still cash contributions being paid ? Discounts of floating ?

Thanks for the help
Scott

[PTILoveYou]

BNZ refix:

Classic rate
1 year 4.29%pa
2 year 4.29%pa
3 year 4.29%pa

[Bluekiwi]

If you can get good 6 month rates.
Why not just continually stick with that.
And have a longer term quote ready to go if interest rates do take a leap - at some stage in the future whenever that may be.

You can break that 6 months and fix longer term then.

Its not just short term cost reduction.
Its also the longer term cover you get from fixing 5 years in 2 years time, instead of fixing 5 years now.

The 5 and 2 years just being an example.
Where you are getting cover in those years 2022 / 2023.

Whether its 1 or 2 or 5 years you are holding out on the longer fix.
If rates do rise rapidly, you are saving at the end of that spectrum if rates did jump high, that could be major savings.

[Nick G]

ASB 4.69% for 5. I'm about 60% 5yr and the rest revolving or short term.

[brokerman]

Yep ASB pretty competitive at 5 years, Westpac not bad either.

[Wayne]

5years is still too long for me.
I agree with Bluekiwi and that's the strategy I use.

[Bluekiwi]

5years is still too long for me.
I agree with Bluekiwi and that's the strategy I use.

Unfortunately I did think of this strategy only 2 years ago...

After I fixed

[Nick G]

:-) I worry less about the difference between 4.3 and 4.7 than I do about 4.x and 6.x.

[Wayne]

Unfortunately I did think of this strategy only 2 years ago...

After I fixed

Fortunately I have been doing this for a year or 2 now so the 'unfortunate' fix's are slowly being removed.

[Dunning]

Kiwibank
3 years 4.25%
floating 4.80%

Westpac
3 years 4.22% (Kiwibanks original offer)
floating 4.90% - Offset

Kiwibank would have done 7k cash plus their internal legal to move to them. They do not have offset for businesses use.

[d2ba]

http://www.propbd.co.nz/bank-economist-asks-afford-unaffordable/

[Bobsyouruncle]

Common sense and realistic analysis at last, who'd a thunk it from a bank!