• Login:
Welcome, Register Here
follow PropertyTalk on facebook follow PropertyTalk on twitter Newsletter follow PropertyTalk on LinkedIn follow PropertyTalk on facebook

Latest Threads/Videos


News and Views

Most Active - Last 30 Days


Page 2 of 546 FirstFirst 1 2 3 4 12 52 102 502 ... LastLast
Results 11 to 20 of 5452

Thread: Interest Rates

  1. #11
    Join Date
    Sep 2003
    Location
    High up above and deep down under
    Posts
    10,988

    Default Interest Rate Rise or Drop 2011

    Hi Guys

    Westpac becomes first bank to hike floating mortgage rate

    FRIDAY , 30 JANUARY 2004


    Westpac Bank today became the first bank to put up its floating mortgage rate, hiking it to 7.5 per cent from 7.25 per cent to match yesterday's Reserve Bank move.

    The Reserve Bank confounded economists and commentators by putting up the Official Cash Rate yesterday despite annual inflation being only 1.6 per cent and the economy forecast to slow this year.

    Westpac made its move without any public announcement. A spokeswoman said the bank had decided not to tell the media any longer when it changed its floating mortgage rate.

    In November, Westpac led other banks in the previous round of mortgage rate rises.

    It lifted its floating rate from 7.10 per cent even though the Reserve Bank had left the Official Cash Rate steady.

    Westpac consumer general manager Ken Hodgson said the increase in the rate was in reaction to the Reserve Bank's move but also in response to the "significant" rise of rates in the wholesale market.

    He said that while the majority of borrowers were on fixed rates floating rates were still very competitive.

    The rate rise would cost a borrower an extra $24 a week on a loan of $150,000.

    What I find interesting from the above article is the fact that,
    Westpac made its move without any public announcement. A spokeswoman said the bank had decided not to tell the media any longer when it changed its floating mortgage rate.
    Shades of the petrol companies who no longer tell us that the price of petrol is going to increase.

    It's called good customer relations. No wonder that Westpac aren't in the top three for good customer relations.

    I wonder in the light of the increase how many landlords are going to put their rents up or are they going to carry the extra cost? How much extra? $24 per week on $150k.
    Regards
    Last edited by BusyLizzy; 14-01-2009 at 12:30 PM. Reason: Fixed quote

  2. #12
    Join Date
    Jun 2005
    Location
    Auckland
    Posts
    4,996

    Default

    Given today's article in the Herald re rents, I don't think landlords (in Auckland) will be a a position to pass on the extra cost.

    All the wiley ones are on fixed for another couple of years, anyway

    Happy rent raising

    cube

  3. #13
    Join Date
    Sep 2003
    Location
    High up above and deep down under
    Posts
    10,988

    Default

    Too true Cube.

    Regards

  4. #14
    Join Date
    Jan 2004
    Posts
    1,545

    Default

    Quote Originally Posted by cube
    Given today's article in the Herald re rents, I don't think landlords (in Auckland) will be a a position to pass on the extra cost.
    The same rental situation will more than likely creep down the country.
    Auckland is the canary. Imagine if interest rates went up another 1% in the next year, not an unimaginable scenario with the intl economic climate, thats an extra $100 per week on a $150,000 loan. Try passing that on. What I've seen happen in the past cycles is first the glut (happening now), then the ones in it to make a fast buck get scared and scarper because they can't find tenants. Eventually it evens out and the rents can go up. I'm hanging out for that point, I have one place that is renting now for the same amount as I got for it in 1992 (int rates about 13% then). The rent had to go down because of the market early/mid 90's and its only just got back to where it was. The value of the house has more than doubled.
    Its time for a rent hike in my opinion. Its just not cutting it.

  5. #15
    Join Date
    Dec 2003
    Location
    Hawkes Bay
    Posts
    1,659

    Default

    Just because you see something in writing, doesn't mean that it is true.

    $150,000 loan if you were on inerest only is approx $7 p.w. difference from 7.25% up to 7.5%p.a.

    $150,000 loan on P & I over 20 years is $5 a week difference - from $273.59p.w. goes to $278.86p.w.

    Don't believe everything you read. Is it a mistake, or scare tactics??

    Regards
    Graeme Fowler

  6. #16

    Default

    I am going with "scare tactics". Scaring the bank back into issuing press release announcements of rate rises, replete with correct, rather than scarily overblown, figures!

    Ellie

    BTW: Which are the three banks with the best customer relations?

  7. #17
    Join Date
    Sep 2003
    Location
    High up above and deep down under
    Posts
    10,988

    Default

    Hi Guys

    ANZ moved interest rates tonite.

    Floating rate is up to cover Westpac.

    However they have moved 2, 3, 4 & 5yr fixed rates down.

    Anybody for chess?

    Check out the latest rates on:
    http://www.interest.co.nz/mortgages.html

    Regards

  8. #18
    Join Date
    Sep 2003
    Location
    Global
    Posts
    277

    Default

    The short answer is to
    a) lock in for a bit longer in the first place (and take a gamble that rates will rise)
    b) budget your repayments on 2 points higher than you are paying already (thereby reducing principal quicker or saving a bit for unforseen rises in the future)
    inzvestor
    Invest in New Zealand - local knowledge, local prices
    Giving the UK fair access to the New Zealand property market

  9. #19
    Join Date
    Sep 2003
    Location
    High up above and deep down under
    Posts
    10,988

    Default

    Hi Guys

    Westpac at it again.
    They have put 6mths and 1yr rates up and 2, 3, 4, 5yr fixed rates down.

    Regards

  10. #20
    Join Date
    Jun 2005
    Location
    Auckland
    Posts
    4,996

    Default

    Hi muppet,

    What's your source - they haven't changed their web site yet.

    cube


 

Thread Information

Users Browsing this Thread

There are currently 4 users browsing this thread. (0 members and 4 guests)

Tags for this Thread

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •