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 | 5 | 6 | 7 | 8 
112 posts

Master Geek
+1 received by user: 5


  # 1365618 13-Aug-2015 14:57
Send private message

nathan: sounds about right, I got 5K on a 500K loan


yeah 1k per 100k loaned seems to be the going rate 

213 posts

Master Geek
+1 received by user: 5


  # 1366504 14-Aug-2015 17:22
Send private message

Hey Guys,

Got two options here.
Stay with current bank(bnz) and get $3000 cash back and refix at 4.59 two years
Go to asb $4500 cash back and fix at 4.49 two years.

What are the usual lawyers fees for changing banks? Going to ASB I can get better terms and I like fastnet over bnz online banking.
Kiwi bank was $3500 cash back to change and 4.54
Havent tried any other banks

 
 
 
 


Mad Scientist
20325 posts

Uber Geek
+1 received by user: 2769

Trusted
Lifetime subscriber

  # 1379603 4-Sep-2015 10:55
Send private message

4.35 BNZ 1 year fixed




Swype on iOS is detrimental to accurate typing. Apologies in advance.


1464 posts

Uber Geek
+1 received by user: 389


  # 1379633 4-Sep-2015 11:56
Send private message

Wow how'd you get it that low?
Did you get any of the cash back type offers other above have listed?

Mad Scientist
20325 posts

Uber Geek
+1 received by user: 2769

Trusted
Lifetime subscriber

  # 1379642 4-Sep-2015 12:02
Send private message

No I didn't. It's all over the internet.




Swype on iOS is detrimental to accurate typing. Apologies in advance.


74 posts

Master Geek
+1 received by user: 4


  # 1379785 4-Sep-2015 14:30
Send private message

Is it possible to get one of those employer/industry discounts on that new BNZ 1 yr fixed rate?

14789 posts

Uber Geek
+1 received by user: 2752

Trusted
Subscriber

  # 1379797 4-Sep-2015 14:41
Send private message

I'm considering breaking out of a fixed term contract at 6.3% which is due to run for another 18 months. Mortgage calculators say if we fix at 4.99% now we'd save a couple of grand. My guess is if we float it for a couple of months then fix we'd save any more.

Any thoughts? Right now the break fee isn't tooo bad (around one months mortgage payments), but the longer we leave it the higher it gets.

 
 
 
 


5124 posts

Uber Geek
+1 received by user: 1431

Trusted
Microsoft

  # 1379804 4-Sep-2015 14:53
Send private message

Float and fix in a few months

3295 posts

Uber Geek
+1 received by user: 211

Trusted

  # 1379846 4-Sep-2015 15:40
Send private message

timmmay: I'm considering breaking out of a fixed term contract at 6.3% which is due to run for another 18 months. Mortgage calculators say if we fix at 4.99% now we'd save a couple of grand. My guess is if we float it for a couple of months then fix we'd save any more.

Any thoughts? Right now the break fee isn't tooo bad (around one months mortgage payments), but the longer we leave it the higher it gets.

Generally the break fee will be contingent on the current interest rate for the term remaining, so ideally you want to break before a drop rather than after. It's impossible to say "the longer we leave it the higher it gets" because no one knows what the yield curve will look like in the future. For the same reason, no one can say for certain if it's better to fix now or later. Obviously, with a normal yield curve, the longer you leave it the higher the difference in interest rates, but then the shorter the term.

Personally, I wouldn't think there's much to decide. If the break fee is less than what you'd save in interest then do it (assuming you don't have specific cashflow requirements, in which case you might have other criteria). That's the first step. For me, that wouldn't matter if it was a couple of grand different or a couple of dollars. It's easy to break so why not? Last time I did it (with ASB) their calculation seemed way off, because it was a complete no-brainer to break. They don't make mistakes, so there'll be a reason for it, but in that case I take it as a win-win.

So, then, do you float or fix? Obviously, if you float you don't get to take advantage of the lowest rates. How much lower are you hoping the fixed rates go that the margin you're paying on floating makes sense, especially in the short-term. That's up to you, I mean if you ended up paying 6.3% on your floating (as an example), you've just paid the break fee for the privilege of fixing whenever you want. Is that really worth it? Depends how low the rates go and how long you wait. There's no crystal ball here.

If you worry about the future, you're just speculating. That's fine, if that's what you're trying to do. Could go the other way, then what? I don't bother gambling with my mortgage, because no-one knows the future and the bank has more people dedicated to this problem than I do, so I just work in terms of what I know. Sure, the rates may drop in the future but probably (haha) not by as much as even what you're looking at (6.3% down to 5%). If you can save a couple of grand by refixing now, how much are you hoping to save by taking the chance and waiting?

14789 posts

Uber Geek
+1 received by user: 2752

Trusted
Subscriber

  # 1379850 4-Sep-2015 15:44
Send private message

Well the immediate effect for me is we pay a months payments (which is no problem) just to switch from 6.4% to 6.35%, though I should get a discount off the advertised rate. The gain comes when we lock in a lower rate in a few months, and the gain is over a couple of years.

I think given the general trend is downward the sooner I break the less it costs, the more we save. We have a spreadsheet to calculate whether it's worthwhile a mortgage broker gave to my wife, it indicates at least $1K savings, but maybe $3K if rates go to where they're expected, taking into account the break fees.

3295 posts

Uber Geek
+1 received by user: 211

Trusted

  # 1379863 4-Sep-2015 15:57
Send private message

timmmay: Well the immediate effect for me is we pay a months payments (which is no problem) just to switch from 6.4% to 6.35%, though I should get a discount off the advertised rate. The gain comes when we lock in a lower rate in a few months, and the gain is over a couple of years.

I think given the general trend is downward the sooner I break the less it costs, the more we save. We have a spreadsheet to calculate whether it's worthwhile a mortgage broker gave to my wife, it indicates at least $1K savings, but maybe $3K if rates go to where they're expected, taking into account the break fees.

Given that none of us know your exact situation, no one can tell you what to do (and it would be irresponsible to give you financial advice anyway, haha). If you can save an extra $2k by waiting and you don't mind the risk that it might not happen, go for it! :)

14881 posts

Uber Geek
+1 received by user: 2017


  # 1379896 4-Sep-2015 16:47
Send private message

timmmay: Well the immediate effect for me is we pay a months payments (which is no problem) just to switch from 6.4% to 6.35%, though I should get a discount off the advertised rate. The gain comes when we lock in a lower rate in a few months, and the gain is over a couple of years.

I think given the general trend is downward the sooner I break the less it costs, the more we save. We have a spreadsheet to calculate whether it's worthwhile a mortgage broker gave to my wife, it indicates at least $1K savings, but maybe $3K if rates go to where they're expected, taking into account the break fees.


They are making a big margin off you, considering they are offering depositors anywhere from 0.1 - 3.75 % on oncall deposits. The thing abut banks is that they never lose. I wouldn't expect to see rates increasing much for a while, basically because the economy isn't great, and the world situation is only worsening. 

14789 posts

Uber Geek
+1 received by user: 2752

Trusted
Subscriber

  # 1379907 4-Sep-2015 17:18
Send private message

Yeah I know banks never lose. I broke out of my fixed rate because my best guess is rates are sliding. I'll let it float for a few months then fix portions as it seems to make sense. This article suggests rates could even get down to below 4% at some point. I want me some of that.

Of course I spread my risk and rate profile.

1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 
View this topic in a long page with up to 500 replies per page Create new topic



Twitter and LinkedIn »



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 »

Air New Zealand uses drones to inspect aircraft
Posted 17-Jun-2019 15:39


TCL Electronics launches its first-ever 8K TV
Posted 17-Jun-2019 15:18


E-scooter share scheme launches in Wellington
Posted 17-Jun-2019 12:34


Anyone can broadcast with Kordia Pop Up TV
Posted 13-Jun-2019 10:51


Volvo and Uber present production vehicle ready for self-driving
Posted 13-Jun-2019 10:47


100,000 customers connected to fibre broadband network through Enable
Posted 13-Jun-2019 10:35


5G uptake even faster than expected
Posted 12-Jun-2019 10:01


Xbox showcases 60 anticipated games
Posted 10-Jun-2019 20:24


Trend Micro Turns Public Hotspots into Secure Networks with WiFi Protection for Mobile Devices
Posted 5-Jun-2019 13:24


Bold UK spinoff for beauty software company Flossie
Posted 2-Jun-2019 14:10


Amazon Introduces Echo Show 5
Posted 1-Jun-2019 15:32


Epson launches new 4K Pro-UHD projector technology
Posted 1-Jun-2019 15:26


Lenovo and Qualcomm unveil first 5G PC called Project Limitless
Posted 28-May-2019 20:23


Intel introduces new 10th Gen Intel Core Processors and Project Athena
Posted 28-May-2019 19:28


Orcon first to trial residential 10Gbps broadband
Posted 28-May-2019 11:20



Geekzone Live »

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


Support Geekzone »

Our community of supporters help make Geekzone possible. Click the button below to join them.

Support Geezone on PressPatron



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.