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  • Home loan renewal

    Hi Guys
    Received a loan renewal notice today from my bank.
    A big change of format from previous loan renewal notices.
    3 choices.
    1. I can lock in a new fixed rate any time now.(loan expires 3 Aug 2011)
    2. Let it roll over to the standard floating rate when current rate expires.
    3. Choose a split loan rate.(brochure provided)

    From Tony's latest newsletter
    But be aware that not everyone is planning to go through the next three years floating. So if and when we see a rush to fixed rates don’t be surprised if instead of banks waiting a day before they raise fixed rates, as happened in March 2009, they do it the very hour the movement starts – if not before word goes out.
    I've got some thinking to do over the weekend.
    I like the split loan example of
    40% floating at 5.6%
    30% fixed 1yr at 5.95%
    30% fixed 3yrs at 6.9%

    Things have been very quiet with mortgage rates over the last month.
    "There's one way to find out if a man is honest-ask him. If he says 'yes,' you know he is a crook." Groucho Marx

  • #2
    I got much the same letter from Bank Direct a couple of months ago. When I went to fix they were going to charge a fee so I left it floating as I was pretty much ambivient. I was planning to fix later in the year, but now I'm leaning towards leaving it floating - decisions, decisions........

    I have another loan at BNZ, and the Bank direct one is in 3 portions (one being the small revolving part), I don't know why they keep them seperate.

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    • #3
      Tan sometimes a little threat of leaving gets refix fees waived
      Hamish Patel | ph: 09 625 4693 | mob: 021 625 693
      My Website
      Be informed - register for our free monthly newsletter

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      • #4
        Thanks mb, I'll give it a crack.

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        • #5
          Refix fees - what the hell are they? They go before even rates are discussed. Usually phrases such as "I'm not paying you for the privilege of having my business for another X years".

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