Home loan renewal

[muppet]

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.

[Tan]

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.

[mortgage broker]

Tan sometimes a little threat of leaving gets refix fees waived

[Tan]

Thanks mb, I'll give it a crack.

[steven anderson]

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".