Interest Rates

[muppet]

Hi Guys

The interest rate war appears to be heating up.

The ASB have reduced 2yr rate to 7.65% and 3, 4, 5yr rates to 7.6%

Compared to the BNZ rates which are 2yr rate is 7.55%. 3yr rate is 7.55% and the 4 and 5yr rates are 7.8%.

And of course Westpac as always, are dragging the chain.

Regards

[muppet]

Hi Guys

ANZ have dropped their 2yr fixed to 7.65% and 3, 4, 5yr fixed to 7.6%

In comparison Westpac remains at 7.8%.

Regards

[miss]

When I was at the ASB yesterday, they told me that they are doing 7.4, although I dont know the terms. It is some in house promotion thing I think.

[kelster]

TSB have market rates of 7.5 % currently but you can get a P & I loan up to 40 years. Nice for equity building and cashflow.

[muppet]

Hi Guys

Lots of activity this week so far.

BNZ 1 yr 7.8% up.
4 and 5 yrs fixed 7.6% down.

Superbank 6mths 8.15% up. 1yr fixed 8.05% up. 2, 3, 4, 5yr fixed 7.75% down.

Westpac 3, 4, 5yr fixed 7.6% down. 2yr fixed 7.7% down.

Regards

[Kimberly]

Hi,

This is a cool site with the latest interest rates. :mrgreen:

https://www.interest.co.nz/mortgages.html

[muppet]

Hi Kimberley

Well done.

That is the site I use to get all the latest interest rate movements.

Refer to http://www.propertytalk.co.nz/postxf512-0-0.html

Regards

[Julian]

If those of you posting latest interest rates could also post the variable rates it would be appreciated. Using variable (or unfixed) loan durations is a strategy that has its place in certain aspects of an investor's portfolio, particularly where a purchasor does not invisage holding a property for a terribly long period.

Thanking you in advance.

Julian.

[fudosan]

Hi Julian,

Why not subscribe to the free daily mortgage rate email service from

http://goodreturns.mailrun.net.nz/cgi-bin/mail.cgi?f=list&l=mortgage

and you get the latest rates + news delivered to you everyday

[Julian]

Good idea, but I wasn't just thinking of myself here.

Julian.

[muppet]

Hi Guys

BNZ have dropped 2 and 3 yr fixed rates to 7.45%.

Noone has changed their floating rates for weeks.

Regards

[kelster]

If my experience is anything is anything to go by, Westpac will drop their rates too...in six months time. It seems it's always the same banks that lead the market and the same banks that happily follow. kind of like with shell and petrol.

[muppet]

Hi Guys

ASB have moved some rates ready for the new week.
6mths up to 8%.
1yr up to 7.9%
4yrs down to 7.5%
5yrs down to 7.4%

Regards

[mortgagerates]

Weekly Home Loan report: More short-term rates rise
The past week has been relatively quiet on the home loan front and it appears much of the attention is shifting to what the Reserve Bank will do it at its next official cash rate review on July 28.

Economists suggest that the chance of another rates hike is fading as weaker economic data comes in.

However there is also a view that the Reserve Bank will hang tough with its rhetoric. What makes the picture slightly more confusing is that lenders seem to be contradicting this view.

Floating and short-term rates are principally set off the central bank’s OCR. When it goes up floating rates invariably go up by the same amount. Likewise six-month and one year rates closely follow the OCR.

With no changes in the cash rate recently and a growing view that it will remain unchanged one wouldn’t expect much movement in short-term rates. However in the past week the main trend was for lenders to push these rates up.

Those to move include ASB Bank, and other organisations related to it (Sovereign, Bank Direct, NZ Home Loans and AA Financial).

Another trend which www.goodreturns.co.nz has noted in past commentaries is for longer-term rates to fall.

In the past week this trend has again slowed with just a couple of lenders reducing rates in this area by around 10 basis points. Those to drop rates included ASB Bank, AXA and Bank Direct.

What’s the best option for people looking for home loan finance? Well it depends which camp you are in. Those who expect rates to start falling next year are suggesting that borrowers fix for 12 to 18 months, those with a more pessimistic view are suggesting that fixing for two to three years and locking in relatively cheap (historically) rates is the way to go.

What’s on offer? One year rates range from 7.60% up to NZ Mortgage Funds’ 8.58%. Five providers are offering 7.60% including two Canterbury-based lenders, ABS Canterbury and SMC. The others are TSB Bank, Public Trust and Southern Cross.

Two year rates go from Kiwibank’s 7.35% to GEM Home Loans on 8.40% and three year rates range from 7.45% (BNZ and PSIS) up to 8.25%.

To compare rates go to http://www.goodreturns.co.nz/section/200.html

[fudosan]

Hi mortgagerates

A warm welcome to PT

I'd be interested in reading more of your comments on the funding aspects of property investing.