Interest Rates

[whoknows]

As Anthonyacat and Wayne have alluded to here, I DO think the 2 years and above term rates have very little relevance to the OCR.

I think if you can get a good 2 year rate, then it is worth considering.

[whoknows]

HSBC for eg. is doing 4.25 for 2 years. You could get the same rate from ANZ/BNZ too... Don't think OCR cut will bring the rates below 4.25% for the 2 year term especially.

[BigDreamer]

I know a lot mention that long term fix rates are not impacted by OCR but I find it hard to acknowledge this as the long term fix rates have dropped significantly in the past year (from 6.7% late last year to 4.99% fixed for 5 years).

What are the major factors impacting long term fix rates?

[Hound]

Today I fixed one big mortgage & one not so big at 4.30% one year ANZ. I think that's a pretty good rate. Not really worth squibbling over a further tiny discount. At least in my view.

[Wayne]

I know a lot mention that long term fix rates are not impacted by OCR but I find it hard to acknowledge this as the long term fix rates have dropped significantly in the past year (from 6.7% late last year to 4.99% fixed for 5 years).

What are the major factors impacting long term fix rates?

They are overseas.
Things like printing money, poor Euro, Fed raising their cash rate.
Anything really that has an impact on global growth - NZ OCR doesn't do that.

Remember that overseas events do impact on (or form an input to) what the RB does with the OCR

[kiwibean]

Just got 4.24% on a small floating portion fixed for 1 year

[Wayne]

Just got 4.24% on a small floating portion fixed for 1 year

Good rate - who with?

[donthatetheplayer]

Still locked in at 5.39% for 5 years... Hard to believe the rates we are seeing now. When I got 5.39 I though that was great. Heck, not so long ago rates were over 10%... How times change. When (if?) rates go back up quite a bit it will be interesting to see what this does to property prices.

[PTILoveYou]

Still locked in at 5.39% for 5 years... Hard to believe the rates we are seeing now. When I got 5.39 I though that was great. Heck, not so long ago rates were over 10%... How times change. When (if?) rates go back up quite a bit it will be interesting to see what this does to property prices.

I think the interest rate environment globally has been changed structurally.

10 years ago people were probably still thinking would interest rates go back to 20%+.

Now most people still believe interest rates could go back to double figures.

But will that happen in the future? Hard to tell, but I doubt that would happen any time soon.

[kiwibean]

Good rate - who with?

Got it with KB directly. Now just waiting until my other loans come off then can get these rates

[Perry]

Will it ever get to 3%??

The old SAC rate was 3% fixed for the term of the loan.
That was probably back around the sixties or seventies.

[Wayne]

For the younguns - SAC is State Advances Corporation

[PTILoveYou]

For the younguns - SAC is State Advances Corporation

That must have been a government organisation?

[Eugene]

Yes a government organisation.
I don't remember anyone having investment properties, possibly it would have been impossible to fund them.
However there were ways for a few people to become very rich; get an import license, own a farm - there were subsidies, and loans must have been available to farmers.
There was a car assembly industry in NZ so to import a car you needed 'overseas funds'.
The economy must have been very controlled.

[muppet]

Yep.
I had one of those SAC loans being a public servant on transfer.
Mid seventies.
House cost $17000 to build and the section $6000.
Still have it.