Interest Rates

[Keys]

'Hoarding' cash could become a thing, once again.

The closer we get to a cashless society, the closer having cash will cost more on transactions.

[Wayne]

Usual story, OCR goes up - lenders trip over each other in the rush to raise rates. OCR goes down and lenders keep bashing the snooze botton on their alarm clocks.

I don't think this is true.
OCR doesn't drive long rates - banks can't use OCR money (not a thing I know but ...) to lend for a 3 year term (or 2 year or 1).
They need to borrow long to lend long (a banking requirement).
If the deposit rates get too low depositers will leave, banks then won't have money to lend.

So immediate reaction with floating rates but subdued reation with longer rates - they just don't have the same room to move.

[Learning]

My smallest investment home loan just rolled off it's fixed term. I wanted to re-fix for just 6 months to bring it in line with all my other loans. I phoned the bank just after the OCR drop. The best they could offer me was 0.25% above the advertised rate with no added benefits because it was an investment loan. I said never mind.

The bank just dropped its advertised 6 month rate by 0.25% so I thought I'd try again. This guy not only knocked another 0.49% off the new advertised rate but also added Flybuys.

0.99% saving between one week and two phone calls. Will be asking to deal with that guy again in 6 months.

[Keys]

Smallest being?

[Learning]

Only $25K. I plan to bundle it up with one of the others when they're up for re-fixing.

[Bluekiwi]

My smallest investment home loan just rolled off it's fixed term. I wanted to re-fix for just 6 months to bring it in line with all my other loans. I phoned the bank just after the OCR drop. The best they could offer me was 0.25% above the advertised rate with no added benefits because it was an investment loan. I said never mind.

The bank just dropped its advertised 6 month rate by 0.25% so I thought I'd try again. This guy not only knocked another 0.49% off the new advertised rate but also added Flybuys.

0.99% saving between one week and two phone calls. Will be asking to deal with that guy again in 6 months.

What bank was that, and what rate did you get. I see one bank has released a 1 year rate at 3.55%.

This is crazy stuff, back in 2014 my forward projections had pencilled in an increase in rates to maybe 7% so my interest costs are now going to be half that, crazy work, reckon we might have a rate next year starting with a 2 ??
Maybe 2.99% and deposits at 2.25%

[Keys]

Interesting that you had some leverage on a $25k loan. Possibly the combined value you bring to the bank gave you some.

[Learning]

What bank was that, and what rate did you get.

BNZ and 4.3%

Interesting that you had some leverage on a $25k loan. Possibly the combined value you bring to the bank gave you some.

I'm a Premium customer. Not that meant much to the first phone center person.

[Perry]

With the NZ dollar tracking down, and the US economy strengthening, Interest rates could start to rise ??

Didn't happen.

[Minz]

BNZ and 4.3%

I'm a Premium customer. Not that meant much to the first phone center person.

Same bank, premium customer too....rate dropped to 3.94% on Tuesday evening, the Friday before, the best they could do was 4.1% (1 yr rates)...I daren’t Check to see what the rate would have been two days ago....difference isn’t that great in the scheme of things though.

[Frezzinghot]

I would be interested to see what the best 1 year rate is that people are getting from now on.
Carded rates being around the 3.85% for 1 year and 3.75% for 2 years.

Whether people are able to get discounts on the carded rates of the "usual" .4 and .5 we have seen on this thread.
And if they are getting 3.35% for 1 year ????

We have 150k commit off fixed next year on the 8th March, currently 3.99%, what are the chances we could get to 3% next year?

[Bluekiwi]

We have 150k commit off fixed next year on the 8th March, currently 3.99%, what are the chances we could get to 3% next year?

Nice to hear from you my friend.
I have no idea as to the answer, I wish I knew, but I reckon if OCR goes down another notch to .75% and rates go down another notch on 1 year fixed from 3.69 to say 3.6 ??

Then you may be able to get a discount on that of .25 to maybe 3.35% ???

That's what I have been asking on here.
If carded rate is "X" - how much are people getting below that upon request.

It used to be a minimum of .25% just for asking, and sometimes as much as .6%

But just as the OCR cuts get past on less as you reach zero, I am thinking that the discounts below carded rates are also shrinking.

[Frezzinghot]

Nice to hear from you my friend.
I have no idea as to the answer, I wish I knew, but I reckon if OCR goes down another notch to .75% and rates go down another notch on 1 year fixed from 3.69 to say 3.6 ??

Then you may be able to get a discount on that of .25 to maybe 3.35% ???

That's what I have been asking on here.
If carded rate is "X" - how much are people getting below that upon request.

It used to be a minimum of .25% just for asking, and sometimes as much as .6%

But just as the OCR cuts get past on less as you reach zero, I am thinking that the discounts below carded rates are also shrinking.

Oh ok thanks for the explanation, for us it’s not about saving on our mortgage it about keeping the same payments going through to get as much principal paid on each loan, a sort of a win/win scenario, unfortunately we have fixed a 5 year loan at 4.8 but that provides a lot of security long term.

[Keys]

Remember, people will judge you by your actions,not your intentions.You may have a heart of gold -but so does a hard-boiled egg

Good Property Manager material.

[elguapo]

I have no idea as to the answer, I wish I knew, but I reckon if OCR goes down another notch to .75% and rates go down another notch on 1 year fixed from 3.69 to say 3.6 ??
.

Just did a refix at 3.55% for 12 months.