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

Ultimate Geek
+1 received by user: 39


  Reply # 1163501 28-Oct-2014 12:46
One person supports this post
Send private message

joker97: what do you mean negotiate close to 5% - you mean I talk to other banks/brokers?

talk to banks, ask staff to check with their managers, be prepared to walk away.

never accept the carded rate, even "special" ones.



Mad Scientist
18284 posts

Uber Geek
+1 received by user: 2312

Trusted
Lifetime subscriber

  Reply # 1163633 28-Oct-2014 15:27
Send private message

haha i think they'll just say we can give you a 0.1% discount and no other banks are lower. getting from 5.75 to 5 is ... umm ... never heard of it! (esp when everyone else is in the 6s

BTR

1458 posts

Uber Geek
+1 received by user: 426


  Reply # 1163640 28-Oct-2014 15:31
Send private message

Geektastic:
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%!



Mentioning your brother in the US isn't comparing Apples with Apple, their banks are different and their economy isn't that flash not to mention you can buy a house in Detroit for around $5K!





Mad Scientist
18284 posts

Uber Geek
+1 received by user: 2312

Trusted
Lifetime subscriber

  Reply # 1163642 28-Oct-2014 15:33
Send private message

BTR:
Geektastic:
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%!



Mentioning your brother in the US isn't comparing Apples with Apple, their banks are different and their economy isn't that flash not to mention you can buy a house in Detroit for around $5K!




umm someone was selling their house for an iphone 6

380 posts

Ultimate Geek
+1 received by user: 39


  Reply # 1163648 28-Oct-2014 15:38
Send private message

joker97: haha i think they'll just say we can give you a 0.1% discount and no other banks are lower. getting from 5.75 to 5 is ... umm ... never heard of it! (esp when everyone else is in the 6s


all major banks have 2 yr carded on 5.75% now

one could generally get 50 to 75 points discount off carded rate with negotiation if prepared to walk off.

0.1% would be an insult.

237 posts

Master Geek
+1 received by user: 57


  Reply # 1163679 28-Oct-2014 16:02
Send private message

Hmm this is all very convenient as we're playing the market for our mortgage at the moment. Just on Friday, kiwibank gave me a letter of offer, part of which included 2 years @ 5.80%.... me thinks it'll be going back to them with a "please try harder" note...

380 posts

Ultimate Geek
+1 received by user: 39


  Reply # 1163685 28-Oct-2014 16:09
Send private message

Jeeves: Hmm this is all very convenient as we're playing the market for our mortgage at the moment. Just on Friday, kiwibank gave me a letter of offer, part of which included 2 years @ 5.80%.... me thinks it'll be going back to them with a "please try harder" note...

do try and let us know.

several banks offering cash incentives to new customers equivalent of at least 50 to 100 points of rate discount on a 300k loan (edit: on the first year)

13847 posts

Uber Geek
+1 received by user: 2454

Trusted
Subscriber

  Reply # 1163690 28-Oct-2014 16:11
Send private message

From memory, the best I've done from ASB is 0.5% discount. They seem to apply it automatically whenever I need to refix. It's not always that, it varies a bit depending on the term.




AWS Certified Solution Architect Professional, Sysop Administrator Associate, and Developer Associate
TOGAF certified enterprise architect
Professional photographer


659 posts

Ultimate Geek
+1 received by user: 66

Trusted

  Reply # 1163720 28-Oct-2014 16:41
Send private message

hangon:
joker97: haha i think they'll just say we can give you a 0.1% discount and no other banks are lower. getting from 5.75 to 5 is ... umm ... never heard of it! (esp when everyone else is in the 6s


all major banks have 2 yr carded on 5.75% now

one could generally get 50 to 75 points discount off carded rate with negotiation if prepared to walk off.

0.1% would be an insult.


I work for a bank and I can tell you that sort of discount is NOT going to happen. The current rate for 2 years is 6.39% with 5.75% as a special to lure new customers who have 20% equity so the banks can improve their under 80% book to lend to more customers over 80%. Those days of 5% are well and truly gone. They were there but not now.

if it is a floating rate its a different story. 




Sid

380 posts

Ultimate Geek
+1 received by user: 39


  Reply # 1163815 28-Oct-2014 17:35
Send private message

sidders80:
hangon:
joker97: haha i think they'll just say we can give you a 0.1% discount and no other banks are lower. getting from 5.75 to 5 is ... umm ... never heard of it! (esp when everyone else is in the 6s


all major banks have 2 yr carded on 5.75% now

one could generally get 50 to 75 points discount off carded rate with negotiation if prepared to walk off.

0.1% would be an insult.


I work for a bank and I can tell you that sort of discount is NOT going to happen. The current rate for 2 years is 6.39% with 5.75% as a special to lure new customers who have 20% equity so the banks can improve their under 80% book to lend to more customers over 80%. Those days of 5% are well and truly gone. They were there but not now.

if it is a floating rate its a different story. 

Please do tell us what sort of discount is going to happen. 25 points? 40 points?

It's not really a special when every bank is running it, is it. And if that sort of discount is not going to happen, I could just switch bank with whatever discount I can get, and the cash incentives is equivalent of another 50 to 100 point discount on a 300k loan in the first year.

659 posts

Ultimate Geek
+1 received by user: 66

Trusted

  Reply # 1163835 28-Oct-2014 18:10
Send private message

hangon:
sidders80:
hangon:
joker97: haha i think they'll just say we can give you a 0.1% discount and no other banks are lower. getting from 5.75 to 5 is ... umm ... never heard of it! (esp when everyone else is in the 6s


all major banks have 2 yr carded on 5.75% now

one could generally get 50 to 75 points discount off carded rate with negotiation if prepared to walk off.

0.1% would be an insult.


I work for a bank and I can tell you that sort of discount is NOT going to happen. The current rate for 2 years is 6.39% with 5.75% as a special to lure new customers who have 20% equity so the banks can improve their under 80% book to lend to more customers over 80%. Those days of 5% are well and truly gone. They were there but not now.

if it is a floating rate its a different story. 

Please do tell us what sort of discount is going to happen. 25 points? 40 points?

It's not really a special when every bank is running it, is it. And if that sort of discount is not going to happen, I could just switch bank with whatever discount I can get, and the cash incentives is equivalent of another 50 to 100 point discount on a 300k loan in the first year.


Every loan is different and whilst it is not something I can say on a forum I am happy to discuss it further with you. I am happy to call you tomorrow and discuss it further if you want to PM me your details. 




Sid

11179 posts

Uber Geek
+1 received by user: 3547

Trusted
Subscriber

  Reply # 1163841 28-Oct-2014 18:16
Send private message

joker97:
BTR:
Geektastic:
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%!



Mentioning your brother in the US isn't comparing Apples with Apple, their banks are different and their economy isn't that flash not to mention you can buy a house in Detroit for around $5K!




umm someone was selling their house for an iphone 6


Yes well he lives in La Jolla in California where you can't buy a garden shed for $5k!

The point is that you have been able to fix there for the life of the loan for a long long time (many decades) - it's nothing to do with how their economy is now. They also allow mortgage costs and property maintenance as a tax deduction.

This is because they want to encourage home ownership.

There is no reason I can see why NZ could not have 10 year fixed rates - or even 25 year fixed rates. It's just too out of the box for the unimaginative lenders we have.





380 posts

Ultimate Geek
+1 received by user: 39


  Reply # 1163863 28-Oct-2014 18:43
Send private message

sidders80: 
Every loan is different and whilst it is not something I can say on a forum I am happy to discuss it further with you. I am happy to call you tomorrow and discuss it further if you want to PM me your details. 

thanks for that offer, I might when my fixed is matured.

nothing personal - let's just say the bank is not making this easy for average Joe, and the banks are making a lot of profit.

many people would just take the carded rate, there are a few reports on people negotiating with bank, and nowadays they just push a "special" rate out and try to shut down the negotiations.

2471 posts

Uber Geek
+1 received by user: 1132


  Reply # 1163957 28-Oct-2014 20:56
Send private message

Paul1977: 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?

 



 

Not necessarily. Rates are priced off what banks can get the money for, and whether floating rates are higher or lower than fixed ones depends on the shape of the yield curve. If the yield curve is inverted, floating rates will typically be higher than longer duration fixed ones.



Mad Scientist
18284 posts

Uber Geek
+1 received by user: 2312

Trusted
Lifetime subscriber

  Reply # 1163960 28-Oct-2014 21:00
Send private message

Depends on where they can get cheap money, they can pass on if they wish.

What I want to know is who is giving out cheap money and is it going to get cheaper.

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 »

IBM leads Call for Code to use cloud, data, AI, blockchain for natural disaster relief
Posted 25-May-2018 14:12


New FUJIFILM X-T100 aims to do better job than smartphones
Posted 24-May-2018 20:17


Stuff takes 100% ownership of Stuff Fibre
Posted 24-May-2018 19:41


Exhibition to showcase digital artwork from across the globe
Posted 23-May-2018 16:44


Auckland tops list of most vulnerable cities in a zombie apocalypse
Posted 23-May-2018 12:52


ASB first bank in New Zealand to step out with Garmin Pay
Posted 23-May-2018 00:10


Umbrellar becomes Microsoft Cloud Solution Provider
Posted 22-May-2018 15:43


Three New Zealand projects shortlisted in IDC Asia Pacific Smart Cities Awards
Posted 22-May-2018 15:14


UpStarters - the New Zealand tech and innovation story
Posted 21-May-2018 09:55


Lightbox updates platform with new streaming options
Posted 17-May-2018 13:09


Norton Core router launches with high-performance, IoT security in New Zealand
Posted 16-May-2018 02:00


D-Link ANZ launches new 4G LTE Dual SIM M2M VPN Router
Posted 15-May-2018 19:30


New Panasonic LUMIX FT7 ideal for outdoor: waterproof, dustproof
Posted 15-May-2018 19:17


Ryanair Goes All-In on AWS
Posted 15-May-2018 19:14


Te Papa and EQC Minecraft Mod shakes up earthquake education
Posted 15-May-2018 19:12



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.