Interest Rates

[Bluekiwi]

Most banks cant, and have told brokers they wont look at them.
But obviously some banks still are, and BNZ seems better prepared out of the 3 banks I work with.
Their systems likely cope a lot better than others as bank managers seem to have more authority to make decisions at that bank.
Based on my dealings these last 15 years.

[Nick G]

70% of our lending is funded domestically, which right now is a VERY GOOD THING.
It also means that rates need to be at a level when depositors can be paid enough to leave their money in the bank. Can't see many more drops unless funding comes in from offshore, which I doubt RBNZ wants to contemplate.

[JBM]

Which bank?

Heartland -HSBC- 1yr-18m fixed term

[Don't believe the Hype]

Just saw that China Construction Bank dropped there one year rate to 2.8%

Does anyone on here use them? Any thought on if this is likely to break the 3% floor at the main banks we seem to see on interest rates in NZ?

https://www.goodreturns.co.nz/mortgage-rates.html

[JBM]

Just saw that China Construction Bank dropped there one year rate to 2.8%

Does anyone on here use them? Any thought on if this is likely to break the 3% floor at the main banks we seem to see on interest rates in NZ?

https://www.goodreturns.co.nz/mortgage-rates.html

I think we will see a break across the board for short term rates to sub 3% ..once the 2020 depression is realisation across the public out of shutdown with 20% unemployment .... could well see 3yr fixed under 3%

[Don't believe the Hype]

In a discussion this week with one of my banks the difference between the 1yr rate and the 5 yr rate offered was only 0.3pts this would be a fair indication that the banks think rates are staying low for a long time

[JBM]

In a discussion this week with one of my banks the difference between the 1yr rate and the 5 yr rate offered was only 0.3pts this would be a fair indication that the banks think rates are staying low for a long time

so 5yrs 3.4%. ?? if so am temped to fix up most of loans with small part I plan to pay-off to go on floating etc

[Don't believe the Hype]

so 5yrs 3.4%. ?? if so am temped to fix up most of loans with small part I plan to pay-off to go on floating etc

In that range - depending on the size of your lending maybe even a bit lower.

I agree the rate is very tempting and makes a cheap insurance policy against the chance of high inflation out the other side of this covid issue...

[JBM]

In that range - depending on the size of your lending maybe even a bit lower.

I agree the rate is very tempting and makes a cheap insurance policy against the chance of high inflation out the other side of this covid issue...

Yes esp. as the NZD is such a piddly weighted currency and our Govt. is borrowing billions USD.. how badly affected our low wage household incomes Vs high cost of basic living ...housing,food,energy will be on most kiwis largest asset + spending ...unemployment to 20% ... you could see where banks have to increase margins to cover losses ...not overnight but within the next couple of years one could see rates bounce

[Don't believe the Hype]

Westpac just moved their 4 yr carded rate to 3.49% and their 5yr rate to 3.59%

I wonder if we'll see a 3% 5yr rate by Xmas?


There is room to move with just a quick look the Australian 5yr rate is as low as 2.59% for 5 yrs

[Don't believe the Hype]

Prediction from interest . co . nz late yesterday

https://www.interest.co.nz/personal-finance/104999/it-becoming-2-world-home-loan-world-markets-and-regulators-actively-open

[Nick G]

The rich get richer.

Again.

[Don't believe the Hype]

Spot on Nick but somehow that is considered a bad thing or comes with a negative sentiment

Put another way those good at (or who have a propensity to) doing something get better at it an accumulate more of whatever it is...

The rich get richer

The fast get faster

The fat get fatter



Those that sit back and wait for someone to do something to help them the wait gets longer

[JBM]

Westpac just moved their 4 yr carded rate to 3.49% and their 5yr rate to 3.59%

I wonder if we'll see a 3% 5yr rate by Xmas?


There is room to move with just a quick look the Australian 5yr rate is as low as 2.59% for 5 yrs

2.59% 5yr Now that would be brilliant .... for me its only my commercial property I'm paying off over the next 8-9yrs ... other loans I want to pay off asap so 1-2yr fixed ... so I can buy another decent 8%+ yielding commercial property

[Beano]

2.59% 5yr Now that would be brilliant .... for me its only my commercial property I'm paying off over the next 8-9yrs ... other loans I want to pay off asap so 1-2yr fixed ... so I can buy another decent 8%+ yielding commercial property

What are you paying for your commercial loan?