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Batman

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#44426 27-Oct-2009 18:46
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I have a residential house mortgage with BNZ, it comes off fixed term in December.
I got an email saying that i will be charged a 'rate lock fee' which is refundable,  and 'roll over fee' if i chose to rate lock something now.

The $500 rate lock fee i have heard off, but it is still huge.

But the $150 'roll over fee'? What the h*&^ is that???

I think i'm going to complain to the commerce commission. If anyone has any info or similar experience would you mind sharing?

Cheers!

PS - i am also nearly certain that even if i dont rate lock any rates and apply for another fixed term i think i'm going to get charged too!




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vinnieg
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  #267397 27-Oct-2009 18:54
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Ouch, are you sure? you weren't breaking the mortgage contract or anything?
I've been 3 years with NationalBank and they've never tried it on....yet :S got a refix due in March again




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bingothewonderdog
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  #267398 27-Oct-2009 18:56
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I'd be asking the BNZ if they think an alternative provider might be able to help you with these fees, the ASB, say

vinnieg
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  #267399 27-Oct-2009 18:59
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Hmmm, Nationalbank has this:

You can roll over your loan to another fixed rate period (from six months to five years) for no fee.

Maybe change banks?
http://www.mortgagerates.co.nz/

I'm not sure to which bank though. Kiwibank looks good, but when you hear the horror stories of the massive break fees(3x normal banks) then it doesn't look so good




I have moved across the ditch.  Now residing in Melbourne as a VOIP/Video Technical Trainer/Engineer. 



rscole86
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  #267412 27-Oct-2009 19:19
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The roll-over fee will be if you lock and change to another rate now, rather than stay at the current rate, and risk having to go to a higher rate come december. Thats my understanding... ps I have only been a home owner for 1 year now, and since this is my first, I went with a broker.

mdf

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#267436 27-Oct-2009 20:30
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I think its just the fee that you pay when your mortgage comes up for renewal. I guess if you don't like it you can vote with your feet. I know a good mortgage broker. :)




We are with kiwibank and very happy, but did look into the break fee issue and was extortionate, so didn't go down that route (tho if you don't break, you don't pay, and was very happy when we fixed for much less than the floating so cannot complain much).




If you do have a complaint, first port of call is the Banking Ombudsman. There are rules about non-disclosed fees. Tho a quick look at the BNZ website has them listed. Fine print, eh?




Banking ombudsman is at the catchily-titled: http://www.bankomb.org.nz/.



NonprayingMantis
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  #267452 27-Oct-2009 21:06
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Actually the first port of call would be to simply ask the bank to not charge you the fee.


I find with banks they have all sorts of weird and wonderful charges but if you have a decent amount of business with them (e.g. a mortgage of more than a couple of hundred k) these charges will often magically disappear if you ask.


you say the fee is refundable. does that mean if you refix with them they refund the fee? what situation might it be refundable?

When I refixed our mortgage with Westpac in September I wasn't charged a bean, and they gave me a decent discount on the floating rate portion.



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  #267471 27-Oct-2009 21:28
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NonprayingMantis: Actually the first port of call would be to simply ask the bank to not charge you the fee.


I find with banks they have all sorts of weird and wonderful charges but if you have a decent amount of business with them (e.g. a mortgage of more than a couple of hundred k) these charges will often magically disappear if you ask.



 

Indeed, not only have we never paid fees to BNZ, we also have an interest rate lower than the advertised rate. Because we asked. (And have a large mortgage.)




 



bjhoogs
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  #267475 27-Oct-2009 21:31
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Are you able to copy and paste the entire email here (without any personal details)?

bjhoogs
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  #267484 27-Oct-2009 21:43
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NonprayingMantis: 
You say the fee is refundable. does that mean if you refix with them they refund the fee? what situation might it be refundable?

When I refixed our mortgage with Westpac in September I wasn't charged a bean, and they gave me a decent discount on the floating rate portion.





According to my understanding:
The fee will not be refunded if the rate lock is not honored.  If he does not rate lock (reserve a current interest rate for use from December) the fee will not be charged.  If he locks the rate and chooses not to break it the $500 will be refunded.


If he does nothing the loan will probably roll over onto a floating rate at the end of the fixed term without fees (check the original contract).


If he makes an appointment to renegotiate a new fixed term (or possibly even just rings up and asks) he could probably get the roll over fee waived (I think it is only for people that roll over and pay it)

Batman

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  #267522 27-Oct-2009 23:20
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bjhoogs: Are you able to copy and paste the entire email here (without any personal details)?



Email:

That is fine, did you know there is a $500 fee to ratelock? This is charged when the ratelock agreement is signed and sent in, the $500 is credited back  to your account when the loan is changed over to your new interest rate.

The 11th December is when the loan rolls over, there is a fee of $150 to roll your loan over, I can discount this to $75 for you.

Cheers




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Batman

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  #267523 27-Oct-2009 23:20
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TinyTim:
Indeed, not only have we never paid fees to BNZ, we also have an interest rate lower than the advertised rate. Because we asked. (And have a large mortgage.)


how much discount did you get, if i may ask?




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TinyTim
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  #267542 28-Oct-2009 06:30
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joker97:
TinyTim:
Indeed, not only have we never paid fees to BNZ, we also have an interest rate lower than the advertised rate. Because we asked. (And have a large mortgage.)



how much discount did you get, if i may ask?


1/4 % from memory. I think they split the difference between their rate and the rate of the lowest bank after we said we liked the look of the other bank!




 

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  #267572 28-Oct-2009 08:58
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Seems to be a BNZ thing.  Guy here at work is investigating other banks as well rather than be charged this lock in fee.

I haven't heard of it with ASB, but haven't come up to my roll over yet (and can't break it since their break fee is stupidly large).





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bazzer
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  #267585 28-Oct-2009 09:23
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Actually, ASB have one of the fairest ERA, it's simply the present value of difference in interest payments. That's fair, right? You did after all agree to pay the interest rate you fixed at.

ASB charge $250 to move to a new fixed rate but I've never been charged it. That would be a bit cheeky. Also, the banks seem to be a bit stingier with their discounts these days, maybe it depends on your equity...

NonprayingMantis
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  #267591 28-Oct-2009 09:30
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joker97:
bjhoogs: Are you able to copy and paste the entire email here (without any personal details)?



Email:

That is fine, did you know there is a $500 fee to ratelock? This is charged when the ratelock agreement is signed and sent in, the $500 is credited back  to your account when the loan is changed over to your new interest rate.

The 11th December is when the loan rolls over, there is a fee of $150 to roll your loan over, I can discount this to $75 for you.

Cheers




The $500 sounds more like a deposit to ensure the bank keeps your business.  If you want to lock in a rate now then it does cost them money on the wholesale market so they need some kind of security that you will not leave come December. 

You will get it back as long as you stay with BNZ.   

 

The $150 sounds more like a fee.  He has already offered to discount it to $75,  so I bet he would waive it altogether if you asked.

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