Interest Rates

[Don't believe the Hype]

Thanks for that 'insight' based on your combat experience...will 'use' this strategy as a ruthless negotiation approach to get what I want. As the customer we have control....

only other advice, don't win the battle but lose the war... Your contact at the bank is the one who's career you could torch they are also the one's who fight for you internally ... You need to manage the carrot and stick well to deliver your outcomes.

Oh... And always have a back up plan... If they hold firm you need to be prepared to walk away... I.e change banks.

[Cpt707]

thanks for that 'extra' strategy...will use the "I will change banks..plan of attack"

[Dunning]

What is the best rates at Westpac at the moment, looking at 5 year(carded is 5.49%). Currently looking to purchase PPOR and have enough deposit/equity to get to below the 80% LVR.

[eri]

have a small loan with westpac rolling over soon

was 1yr @ 4.39%

as rates seemed about to go up thought had better sort it soon

2 weeks ago they offered 2yr @ 4.9%

"why not the 1yr @ 4.25% special?"

because it's not on your primary residence, the answer

"do better or someone else will", pointing out how small the amount, how large the equity, how payments were well above minimum

1yr @ 4.52% they countered

agreed!

then last week, before they had sent out the letter, rates when up,,,

but the letter has arrived, confirmed the 4.52% offer, but does say

"subject to change"

[SleepyTiger]

Bank is not negotiating rates if they only hold your investment properties. Only better rate if family home is held with them as well. That's my experience anyway, obviously lacking effort.

[Don't believe the Hype]

Bank is not negotiating rates if they only hold your investment properties. Only better rate if family home is held with them as well. That's my experience anyway, obviously lacking effort.

This is not my experience in the last 90 days. Banks will negotiate if you're low risk and have good serviceability. Sometimes they need a nudge... Take one or two properties off them and see if they'll negotiate.

[eri]

to negotiate

they've got to believe they could lose your custom

for an investor to go, another bank would have to take them on

but under the new rules the most heavily leveraged investors won't find new banks

+ if they don't think anyone else would take you

why would they fight to keep you?

....

and yeah

it's working at taking steam out of the market

[Don't believe the Hype]

to negotiate

they've got to believe you could go

but many real estate investors are so deep in old debt the banks wouldn't touch them under the new rules

so you can bluster all you like

if they don't think anyone else would take you on

there's no inducement to pay to keep you

part of the RBNZ LVR restrictions is to allow banks to refinance existing debt against a property at the current level to ensure borrowers are not trapped as you suggest they might be and in fact were before this amendment to the restrictions came into play. So you could move your 70% portfolio without being trapped... So you can still bluff your current bank or move.

another alternative is if you have multiple properties and across your portfolio you're at 70% LVR say... If you have borrowed above 80% (before 60% LVR rules) leveraging equity from an existing property you could have anywhere up to 100% borrowing on one property... The ruling allows you to move that finance to another bank and they can choose to take on that mortgage - they also have the option to decline taking it - assuming they do the balance of your portfolio could slip back under 60% allowing you to take the remaining propeties to a 3rd bank and get favorable terms.

[Don't believe the Hype]

worth a read... I wonder what this same analytics would turn up if done on the NZ market?

http://nzh.tw/11784357

[Nick G]

I think kiwis tend to fix mortgages more, at least that is what I was told.

[Wayne]

I think kiwis tend to fix mortgages more, at least that is what I was told.

Doesn't stop interest rates going up.

[Nick G]

True, but it does give more buffer to deal with coming problems. I tend to agree many people will struggle in Auckland, particulalry if the current wage pressures due to low unemployment triggers wider inflation.

[muppet]

Westpac have hoisted interest rates again.

http://www.interest.co.nz/borrowing

[unhinged]

Offered yesterday by NZ owned bank

We can offer the following fixed rates:
1 year fixed at 4.19% p.a.
2 years fixed at 4.39% p.a.
3 years fixed at 4.69% p.a.

We can hold these rates open until Monday the 23^rd of January, 2017.

Currently I am floating with them with a .8% discount making the rate 4.45%

Have three properties, thinking of fixing one each at each of the rates offered

[Don't believe the Hype]

Offered yesterday by NZ owned bank

We can offer the following fixed rates:
1 year fixed at 4.19% p.a.
2 years fixed at 4.39% p.a.
3 years fixed at 4.69% p.a.

We can hold these rates open until Monday the 23^rd of January, 2017.

Currently I am floating with them with a .8% discount making the rate 4.45%

Have three properties, thinking of fixing one each at each of the rates offered

did they offer a 4 or 5 year rate?