Interest Rates

[Beano]

Yes maybe get 4.3% if you got 20mill on tick

Today's floating commercial interest rate is 4.06%

[JBM]

Today's floating commercial interest rate is 4.06%

Nice ... no way I could get that ... well not yet maybe once my portfolio is millions in free equity

[JBM]

I have 2.1m coming off fixed in 2/20 and 5/20, am at 50% LVR, so reckon that could be good timing.
I am considering either another short term fix for one year, or go long at 5 years if I get a sub 4% rate.

Need a crystal ball to predict what rates will be when I come out the other end in 2021 or 2026.

But I the reason I am looking at 5 years, is to avoid the impact of the RBNZ capital requirements, which could start affecting rates come 2021 / 2022 - maybe ?

well I think we could well see rates force upwards on bond issues esp around countries with high household debt to GDP like NZ with clueless Govt. not helping .....I see rates being forced upwards from late 2020 IMHO .. and yes you could come off a 5yr right into higher rates but then you should have saved a good chunk over the previous years

[Beano]

In Australia (which has had lower interest rates than NZ) many borrowers are obtaining rates near 3%

[Perry]

Investors or PPOR home buyers?

[Beano]

Investors or PPOR home buyers?

I believe PPOR
Have a look at rate city. Com.au
2.89pc is the lowest rate

[richard56]

Official Cash Rate reduced to 1 percent

[Beano]

Official Cash Rate reduced to 1 percent

Commercial floating interest at 3.5% now ????

[Bluekiwi]

I see now why banks have kept floating rates and revolving credit rates so high

Their long game plan was when OCR gets slashed, they make pitiful changes to fixed rates, and instead chop off .5 off those rates instead.

Of course those floating rates should have lower a long time ago, so great strategy on their part.

[deechnz]

Bugger all change to fixed rates at the moment. ANZ and Westpac haven't moved at all. Wonder if it's coming or they've made their changes solely to floating rates.

[Bluekiwi]

Apparently this happened in Ausie and the media over there picked it up and made a big stink, and all the publicity made them change fixed rates as well.

Our media not so smart ????

How low will depositors go is the question.
I think my parents just got 3.2% which I actually thought was pretty good.

Will depositors take 2 or 2.5% ??

Where can they go if they don't.

[Bluekiwi]

I would be interested to see what the best 1 year rate is that people are getting from now on.
Carded rates being around the 3.85% for 1 year and 3.75% for 2 years.

Whether people are able to get discounts on the carded rates of the "usual" .4 and .5 we have seen on this thread.
And if they are getting 3.35% for 1 year ????

[Beano]

The depositors can invest in
1: Japanese Government bonds

The ten year Bond's rate in Japan fell as low as negative 0.215%
Wall Street journal August 7th 2019 page b13

Reserve Bank Governor hasn't ruled out negative interest rates

Business • Premium UPDATED: The official cash rate is now 1.0%, the lowest in New Zealand history. Nevil Gibson | Wed, 07 Aug 2019

[Learning]

Usual story, OCR goes up - lenders trip over each other in the rush to raise rates. OCR goes down and lenders keep bashing the snooze botton on their alarm clocks.

[Perry]

Will depositors take 2 or 2.5%? Where can they go if they don't.

Their mattress?

'Hoarding' cash could become a thing, once again.