Geekzone: technology news, blogs, forums
Guest
Welcome Guest.
You haven't logged in yet. If you don't have an account you can register now.


Mad Scientist
18619 posts

Uber Geek
+1 received by user: 2365

Trusted
Lifetime subscriber

Topic # 154430 28-Oct-2014 07:12
Send private message

With all these palava with rising interest rates and people can't service their mortgages now the interest rate for 2 & 3 year fixed is super low. (5.85 3 yrs, 5.75 2 years)

is it due to a "fall in" some international money selling/lending/ thing??

is it going to get lower?

View this topic in a long page with up to 500 replies per page Create new topic
 1 | 2 | 3 | 4
2090 posts

Uber Geek
+1 received by user: 848


  Reply # 1163306 28-Oct-2014 09:12
Send private message

http://www.interest.co.nz/opinion/72537/bernard-hickey-looks-how-think-about-whether-fix-or-float-and-what-bank-economists-are 


V
ery hard question - mortgage/interest rates are very complicated and influenced by a lot of factors.

Things like the OCR, exchange rate, economic outlook etc.. 

interest.co.nz or a broker in general is a good place to start.

Are they going to get lower? Who knows! If it could be predicted with certainty I'd have paid a lot less over the years.

I feel really sorry for the people with 6-700k mortgages at 5.x% - if and when interest rates get back up around the 9%+ mark those payments are going to be crippling.

566 posts

Ultimate Geek
+1 received by user: 82

Trusted

  Reply # 1163307 28-Oct-2014 09:16
Send private message

Fall in the price of oil, lower spending, dollar is weaker towards the US which all leads to lower inflation which means they don't have to put the OCR up to stop people spending too much.

12602 posts

Uber Geek
+1 received by user: 5914

Trusted

  Reply # 1163310 28-Oct-2014 09:22
Send private message

Interest rates are a totally manufactured and mostly falsely manipulated means to control. Thats it, there is no real logic.




Mike
Retired IT Manager. 
The views stated in my posts are my personal views and not that of any other organisation.

 

 It's our only home, lets clean it up then...

 

Take My Advice, Pull Down Your Pants And Slide On The Ice!

 

 


2230 posts

Uber Geek
+1 received by user: 623


  Reply # 1163321 28-Oct-2014 09:38
Send private message

And all the drops seem to be targeted at new customers to get them to lock in. Why hasn't the floating rate dropped, surely that is the one that should respond fastest to changing economic conditions?




  Home:                                                      Work:
Home Work


429 posts

Ultimate Geek
+1 received by user: 202


  Reply # 1163327 28-Oct-2014 09:47
Send private message

Very tempted by BNZ's new 3 year 5.85% rate. Currently on a 5.75% deal which expires very soon, so we're looking to lock the new one in asap.


11475 posts

Uber Geek
+1 received by user: 3680

Trusted
Subscriber

  Reply # 1163338 28-Oct-2014 09:57
Send private message

joker97: With all these palava with rising interest rates and people can't service their mortgages now the interest rate for 2 & 3 year fixed is super low. (5.85 3 yrs, 5.75 2 years)

is it due to a "fall in" some international money selling/lending/ thing??

is it going to get lower?


I'd hardly describe that as 'super low'. My brother in the USA has a 25 year fixed rate at 3.45%!







Mad Scientist
18619 posts

Uber Geek
+1 received by user: 2365

Trusted
Lifetime subscriber

  Reply # 1163341 28-Oct-2014 09:59
Send private message

we won't see that here i'm afraid. the lowest in modern times was 4.99% 3 years about 4-5 yrs ago or so



Mad Scientist
18619 posts

Uber Geek
+1 received by user: 2365

Trusted
Lifetime subscriber

  Reply # 1163342 28-Oct-2014 10:00
Send private message

MileHighKiwi: Very tempted by BNZ's new 3 year 5.85% rate. Currently on a 5.75% deal which expires very soon, so we're looking to lock the new one in asap.



just realised 2 yrs is 5.75

11475 posts

Uber Geek
+1 received by user: 3680

Trusted
Subscriber

  Reply # 1163343 28-Oct-2014 10:02
Send private message

joker97: we won't see that here i'm afraid. the lowest in modern times was 4.99% 3 years about 4-5 yrs ago or so


No particular reason we could not see longer rates, tracker rates and all sorts here. There is  a bizarre fatalism about financial commentary in NZ!

Our mortgage market is very unsophisticated. Eventually one of the lenders may realise that they can get more customers by expanding what they offer.





1388 posts

Uber Geek
+1 received by user: 357


  Reply # 1163344 28-Oct-2014 10:02
Send private message

Google ZIRP and NIRP.
Sure these arn't mortgage rates we can purchase off the street, but part of a modern "interest rate apartheid".

11475 posts

Uber Geek
+1 received by user: 3680

Trusted
Subscriber

  Reply # 1163446 28-Oct-2014 12:03
Send private message

Dairyxox: Google ZIRP and NIRP.
Sure these arn't mortgage rates we can purchase off the street, but part of a modern "interest rate apartheid".


NZ seems to like high interest rates. (In Japan the rate for home loans is 0.49%...!)

Also if you look at NZ banks, the margin between what they borrow at and what they lend at is much greater than many comparable economies: I estimate our rates are at least 1% greater than they should be.





429 posts

Ultimate Geek
+1 received by user: 202


  Reply # 1163447 28-Oct-2014 12:08
Send private message

MileHighKiwi: Very tempted by BNZ's new 3 year 5.85% rate. Currently on a 5.75% deal which expires very soon, so we're looking to lock the new one in asap.



Done.

Very happy with that for the next 3 years.

429 posts

Ultimate Geek
+1 received by user: 202


  Reply # 1163448 28-Oct-2014 12:08
Send private message

Geektastic:
Dairyxox: Google ZIRP and NIRP.
Sure these arn't mortgage rates we can purchase off the street, but part of a modern "interest rate apartheid".


NZ seems to like high interest rates. (In Japan the rate for home loans is 0.49%...!)

Also if you look at NZ banks, the margin between what they borrow at and what they lend at is much greater than many comparable economies: I estimate our rates are at least 1% greater than they should be.


I agree, but we cant we do about it. They're the only buggers I trust willing to loan me hundreds of thousands of dollars.





381 posts

Ultimate Geek
+1 received by user: 39


  Reply # 1163463 28-Oct-2014 12:15
Send private message

joker97:
MileHighKiwi: Very tempted by BNZ's new 3 year 5.85% rate. Currently on a 5.75% deal which expires very soon, so we're looking to lock the new one in asap.



just realised 2 yrs is 5.75


the words are you should be able to negotiate close to 5% 1 or 2 year from certain banks.

everyone else is dropping or keeping their interest low, the bank only needs to borrow locally up to a ratio, then they get cheaper money elsewhere.



Mad Scientist
18619 posts

Uber Geek
+1 received by user: 2365

Trusted
Lifetime subscriber

  Reply # 1163474 28-Oct-2014 12:25
Send private message

what do you mean negotiate close to 5% - you mean I talk to other banks/brokers?

 1 | 2 | 3 | 4
View this topic in a long page with up to 500 replies per page Create new topic

Twitter »

Follow us to receive Twitter updates when new discussions are posted in our forums:



Follow us to receive Twitter updates when news items and blogs are posted in our frontpage:



Follow us to receive Twitter updates when tech item prices are listed in our price comparison site:





News »

Microsoft Dynamics 365 Business Central launches
Posted 10-Jul-2018 10:40


Spark completes first milestone in voice platform upgrade
Posted 10-Jul-2018 09:36


Microsoft ices heated developers
Posted 6-Jul-2018 20:16


PB Technologies charged for its extended warranties and warned for bait advertising
Posted 3-Jul-2018 15:45


Almost 20,000 people claim credits from Spark
Posted 29-Jun-2018 10:40


Cove sells NZ's first insurance policy via chatbot
Posted 25-Jun-2018 10:04


N4L helping TAKA Trust bridge the digital divide for Lower Hutt students
Posted 18-Jun-2018 13:08


Winners Announced for 2018 CIO Awards
Posted 18-Jun-2018 13:03


Logitech Rally sets new standard for USB-connected video conference cameras
Posted 18-Jun-2018 09:27


Russell Stanners steps down as Vodafone NZ CEO
Posted 12-Jun-2018 09:13


Intergen recognised as 2018 Microsoft Country Partner of the Year for New Zealand
Posted 12-Jun-2018 08:00


Finalists Announced For Microsoft NZ Partner Awards
Posted 6-Jun-2018 15:12


Vocus Group and Vodafone announce joint venture to accelerate fibre innovation
Posted 5-Jun-2018 10:52


Kogan.com to launch Kogan Mobile in New Zealand
Posted 4-Jun-2018 14:34


Enable doubles fibre broadband speeds for its most popular wholesale service in Christchurch
Posted 2-Jun-2018 20:07



Geekzone Live »

Try automatic live updates from Geekzone directly in your browser, without refreshing the page, with Geekzone Live now.



Are you subscribed to our RSS feed? You can download the latest headlines and summaries from our stories directly to your computer or smartphone by using a feed reader.

Alternatively, you can receive a daily email with Geekzone updates.