I've found all the BS surrounding special rates falls away once you have another offer from another bank on the table...problem is the energy required to get to that point.
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Originally posted by deechnz View PostThanks very much for that. I actually just checked my old emails and found that it actually wasn't my PPOR needing to be with Westpac that was the issue with me not getting their Special Rates. My mortgage broker said back in Jan that I didn't qualify for the special rates because "The Special rates are no longer available for Investment/rental properties". And having just checked the Westpac website, they do state "These special fixed interest rates do not apply to loans for business or investment purposes."
Having said that, my MB did also say "Westpac usually offer better rates if your lending for Investment/Rental was below LVR 60%. But that is also typical of all lenders as they know it would be a lot easier to refinance at those levels where as when above LVR 60% very few lenders will take on the refinance even though they technically can."
So, one more question for you to try to suss out how you got such good rates from Westpac- is your total lending below 60%?
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have you defeated them?
your demons
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Which Way Is Down?
Fixed mortgage rates look set to fall as financial markets adjust to moves being made by the Reserve Bank, Westpac chief economist Dominick Stephens said when addressing the New Zealand Shareholders Association annual conference, said markets were still coming to terms with the approach taken by Reserve Bank Governor Adrian Orr, who has been in the top job since March. Two-year fixed mortgage rates remain below five per cent across the major banks, and this looks set to continue with the latest predictions. Homeowners set to renew their mortgage agreements in the coming months, could be set to benefit from even lower rates.
Early this month, the central bank kept its official cash rate unchanged at 1.75 per cent - as expected - but surprised the market by saying it expected to keep the rate there through to 2020. Even then, the next move could be up or down, the bank said.
Mind you, the RBNZ is better placed than most to ensure its predictions come true.
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That will put upwards pressure although I believe we source less funds offshore than we used to.Free online Property Investment Course from iFindProperty, a residential investment property agency.
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ANZ makes almost $2b from New Zealand banking
31 Oct 2018
Originally posted by StuffANZ made a record $1.99 billion profit in New Zealand in the past year. The 10-digit result is equal to almost 40 per cent of the profits made by the entire banking sector in New Zealand last year. It compares to profit of $390 million from Air New Zealand this year, a loss of $190m from Fletcher Building and $20m from Genesis Energy. It works out at $222,222 for each one of its 9000 New Zealand employees - or 121 million hours' work on the minimum wage of $16.50. It is $416 for every New Zealander this year.
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John Key said interest rates may be going up all over the world, true?
I don't get this.
How can interest rates be heading up, legitimately.
It has to be a huge government or banking scam.
All those boomers are still saving for a rainy day.
ideas?
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I'll take it that this is a genuine question.
The reasons interest rates are likely to rise worldwide are:
- After the Global Financial Crisis, a lot of central banks decided to lower interest rates to keep the world economy going.
- Unfortunately, very low interest rates lead to high inflation, which is a _very bad thing_. e.g. NZ house prices, world share markets etc.
- Now that the world economy is in better shape, and inflation has started to take off (e.g. US stock market and unemployment rate, NZ housing and stock market etc.) the central banks are starting to raise rates again to dampen down inflation and stabilise the economy.
Since a lot of the smaller economies in the world decided to borrow US dollars at very low rates, they are now feeling the pain, as the cost of servicing those borrowings has now gone up, so the rates people pay internally have gone up.
This has happened to some extent in NZ. Our inflation rate is still historically too low (as it is in Europe, but they've got an unusually complicated situation called the Euro), so the NZ Reserve Bank has kept interest rates low.
However, our banks borrow a lot of the money they lend for mortgages etc. from overseas, so their interest costs have started to go up, and so have those for retail customers.
Still, in the long term general interest rates in NZ should also trend up, mainly 'cos:
- People can now get nice safe government investments in the US that pay more than those in NZ.
- This means more people want to buy US dollars, which means the price of US dollars goes up and the NZ dollar price goes down.
- Which in turn (after a bit) means NZ goods are cheaper to buy from overseas, so more money comes into the country.
- Which in turn means higher inflation rates, followed by the Reserve Bank having to set higher interest rates.
The US Federal Reserve have already indicated they're very likely to raise interest rates a couple more times at least, so this has started to be priced into market rates, but given the way the US economy is going at the moment there's a strong chance of more to come.
Obviously, it's not as simple as I've outlined above. Economics consists of wheels within wheels within wheels, and all sorts of unusual feedback loops, and nobody has managing economies perfect yet.
It's a close enough analogy though - barring some unexpected 'black swan' events. Such as - ooh, I don't know - how about Donald Trump changing the US Constitution by executive order, and a right wing supreme court allowing it?
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The thing a certain sad fat orange **** doesn't understand is that high inflation rates are _very very bad_ (Just ask Zimbabwe and Venezuela).
It just doesn't feel that way to people. In Venezuela it's obvious, because you may have a house with a trillion money, but you can't buy anything with it, 'cos everybody is too worried about coping with rapidly changing prices, and the normal buying and selling of little things (milk, nappies ...) stops.
In our situation, everybody just goes 'Meh'. Inflation rate of 5% a year? So what - I'l put my money where it inflates the most (houses, anyone), get out at the right time, and buy other stuff with my profits.
Only then the prices of the 'other stuff' you can now afford start rising too because of supply and demand (tried to get a builder lately?), and round and round the money goes, inflating all the time.
The thing is that even an inflation rate that is slightly too high has a gradual (and accumulating) effect on the economy, and sooner or later you end up in trouble.
Unfortunately, the only way to keep inflation down that we know of at the moment is to raise interest rates to soak up money sloshing around in the economy and fueling it.
So that is what the Fed is doing, and the effects have started trickling out of the US and into the rest of the world.
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... retires now with the full intention of not rising to the bait when people start shouting opinions.
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