Interest Rates

[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

Eleven days ago I was hopeful of sub 3% for 5 yrs by Xmas... I guess Xmas has come early!!

BNZ 2.99% out to 5 yrs

https://www.scoop.co.nz/stories/BU2005/S00519/everything-under-3-bnz-unveils-new-home-loan-rates.htm

How low can you go!!

[aucklandn81]

Just another curious question, do we think that the banks would also drop the interest rate on serviceability calculation in future or already doing it??

Thanks 😊.

[JBM]

This might be a dumb question but to banks offer cash to re-finance? When you loans are rolling over and you have to option to go to a new bank will the exisiting bank offer cash? I was told by my broker this is not the case?

Yes I've been with Westpac for the last 4 years over this time I only fix 1yr every time I come to re-fix I usually can find another bank ASB,ANZ that will offer Cash+ sharp interest rate to shift ..I pass on the deal being offered to my WP banker and every year they have to date given me Cash to stay $1-$1.5k (even though I would have to payback cash to shift etc) will be interesting to see if I get another cash bonus to stay this year (westpac is the only bank I have seen do this.... ANZ wouldn't even match other BIG4 low rates years ago ..so ended up going to Westpac ..ASB didn't even want to re-finance me during GFC!! so went to ANZ)

I have nil personal debt and only business(commercial loans) good residential equity Low sub 50 LVR

[JBM]

Eleven days ago I was hopeful of sub 3% for 5 yrs by Xmas... I guess Xmas has come early!!

BNZ 2.99% out to 5 yrs

https://www.scoop.co.nz/stories/BU2005/S00519/everything-under-3-bnz-unveils-new-home-loan-rates.htm

How low can you go!!

If I can get 2.69% I'd be taking that for the next 1yr... this GFC2.0 isn't going away for many years .... lower rates coming 2021 IMHO .. prob get 5yr fixed mid 2's

[Bluekiwi]

Westpac is 5 years at 2.99 and 1 year at 2.79

Have till 28/6 to decide.

What to do, will much change in the next 18 days.

Is there anything to gain at 2.79 when 2.99 is on the table.

Every time I think they cant do lower, they do.

Is this time different.

[JBM]

Westpac is 5 years at 2.99 and 1 year at 2.79

Have till 28/6 to decide.

What to do, will much change in the next 18 days.

Is there anything to gain at 2.79 when 2.99 is on the table.

Every time I think they cant do lower, they do.

Is this time different.

what about 2yr fixed 2.69% seem to be the sweet spot ..thinking about going with that ...my WP Banker thinks I should wait as my fixed term isn't up till mid next month thinks we might see even lower rates ??

I just did some number using I.O on $590k loan now say one signed up for 5yr 2.99 Vs paying 2.79% for 1yr but then getting 4yrs fixed @ 2.6% (pure est.) one would save just over $10,000 in interest costs over the 5yrs(not including cash deals for resigning) ... I'm really in two minds 1yr or 2yr and then go long 5yrs and try getting mid 2's if rates go nowhere but down next 12-24m



Got email back from ASB doesn't look like they even want to take on my loans(was seeing if they were going to offer as good as deal as last year when we had a touch more debt) ...must be some serious issues @ ASB currently.... our loans is covered 2x by net assets...current household net incomes covers loans @ 3% I.O ~ 7.3x.

WTF !!!

[Rosco]

JBM,

- best rate seems to be 1 year. Aggressive play would be to fix 1 year and hope interest rates go lower. Obviously risk the opposite happens. Generally for those on good incomes and can afford to take the gamble

- Another approach is to spread. Have some 1, some 2 and some 5. Spread you risk and goes with the old saying "don't put all your eggs in one basket". If interest rates go lower, you have some short term. If interest rates go up, then you have some long term. Won't normally give you the best result, but safe and have security knowing what your repayments are

- conservative fix 5 years. Gives full security of payments for next 5 years. Might be the best or might not be, time will tell. From current climate, might pay too much short term, but who knows over the whole 5 years

Ross

[Keys]

Every time I have gone with longer terms I have regretted it in the end. However, every time I have done so was for the security of outgoings.

[JBM]

Yes might wait till Monetary Policy Statement from the RBNZ later this month ..if nothing changes might see if I can push WP to match ANZ 1yr Fixed 2.65% with the plan to Fix longer term mid 2021 .. as surely this cycle of lower and lower rates must be coming to an end

[Bluekiwi]

Thankyou gentlemen, some good thoughts there.
To even try to get a cash back or copy another banks special rate, do you need a quote from another bank, saying they are prepared to take your business.
When I try to get a bit tricky, they ask for the quote from that bank.

[Don't believe the Hype]

Thankyou gentlemen, some good thoughts there.
To even try to get a cash back or copy another banks special rate, do you need a quote from another bank, saying they are prepared to take your business.
When I try to get a bit tricky, they ask for the quote from that bank.

If my current bank asked me for a quote from any other bank in order to match I'd simply tell them that if I go to the effort of getting approval from another bank and all you as my current bank will do is match I'm off to the other bank unless they then offer a discount to the other bank.

My current bank has 3 options:

1 - Match the carded rate at other bank without me needing to do any work
2 - Risk me heading to other bank - if i do the work and get approval
3 - Offer me a discount to the best rate I can shop around and get to keep my business.

[north shore]

When I had that from Westpac, I just had a verbal from another bank, when they wanted written I told them the same as Don't believe the Hypes answer. They accepted that.

[JBM]

Ended up getting 2.65% 1yr fixed with Westpac for the bulk of my lending leaving a smaller loan on floating 4.15% I plan to pay off next few months..

Hopefully I'm right and come JULY21 I can lock in lower than present 3-5yr fixed term much the same I'm paying for short term ...the FED does believe they will keep rates @ o% till 2022

[north shore]

Hi JBM, your floating rate seems high, mine is 3.74% with Westpac.

[JBM]

Hi JBM, your floating rate seems high, mine is 3.74% with Westpac.

Yes was told carded rate 4.7% etc ..the loan is still fixed till mid next month 3.79% ..is only like $63k if all goes to plan I'll pay it off end of next month