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
20795 posts

Uber Geek

Trusted
Lifetime subscriber

# 44426 27-Oct-2009 18:46
Send private message

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!




Involuntary autocorrect in operation on mobile device. Apologies in advance.


View this topic in a long page with up to 500 replies per page Create new topic
 1 | 2
2260 posts

Uber Geek

Trusted

  # 267397 27-Oct-2009 18:54
Send private message

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




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

18 posts

Geek


  # 267398 27-Oct-2009 18:56
Send private message

I'd be asking the BNZ if they think an alternative provider might be able to help you with these fees, the ASB, say

 
 
 
 


2260 posts

Uber Geek

Trusted

  # 267399 27-Oct-2009 18:59
Send private message

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. 

4352 posts

Uber Geek

Moderator
Trusted
Lifetime subscriber

  # 267412 27-Oct-2009 19:19
Send private message

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

2304 posts

Uber Geek

Trusted
Subscriber

# 267436 27-Oct-2009 20:30
Send private message

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/.



6434 posts

Uber Geek


  # 267452 27-Oct-2009 21:06
Send private message

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.



918 posts

Ultimate Geek

Trusted

  # 267471 27-Oct-2009 21:28
Send private message

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.)




 

 
 
 
 


183 posts

Master Geek


  # 267475 27-Oct-2009 21:31
Send private message

Are you able to copy and paste the entire email here (without any personal details)?

183 posts

Master Geek


  # 267484 27-Oct-2009 21:43
Send private message

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)



Mad Scientist
20795 posts

Uber Geek

Trusted
Lifetime subscriber

  # 267522 27-Oct-2009 23:20
Send private message

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




Involuntary autocorrect in operation on mobile device. Apologies in advance.




Mad Scientist
20795 posts

Uber Geek

Trusted
Lifetime subscriber

  # 267523 27-Oct-2009 23:20
Send private message

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?




Involuntary autocorrect in operation on mobile device. Apologies in advance.


918 posts

Ultimate Geek

Trusted

  # 267542 28-Oct-2009 06:30
Send private message

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!




 

4510 posts

Uber Geek

Trusted

  # 267572 28-Oct-2009 08:58
Send private message

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).





Previously known as psycik

OpenHAB: Gigabyte AMD A8 BrixOpenHAB with Aeotech ZWave Controller, Raspberry PI, Wemos D1 Mini, Zwave, Xiaomi Humidity and Temperature sensors and Bluetooth LE Sensors
Media:Chromecast v2, ATV4, Roku3, HDHomeRun Dual
Windows 10
Host (Plex Server/Crashplan): 2x2TB, 2x3TB, 1x4TB using DriveBender, Samsung 850 evo 512 GB SSD, Hyper-V Server with 1xW10, 1xW2k8, 2xUbuntu 16.04 LTS, Crashplan, NextPVR channel for Plex,NextPVR Metadata Agent and Scanner for Plex


3300 posts

Uber Geek

Trusted

  # 267585 28-Oct-2009 09:23
Send private message

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...

6434 posts

Uber Geek


  # 267591 28-Oct-2009 09:30
Send private message

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.

 1 | 2
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 »

Facebook Portal to land in New Zealand
Posted 19-Sep-2019 18:35


Amazon Studios announces New Zealand as location for its upcoming series based on The Lord of the Rings
Posted 18-Sep-2019 17:24


The Warehouse chooses Elasticsearch service
Posted 18-Sep-2019 13:55


Voyager upgrades core network to 100Gbit
Posted 18-Sep-2019 13:52


Streaming service Acorn TV launches in New Zealand with selection with British shows
Posted 18-Sep-2019 08:55


Bitcoin.com announces partnership with smartphone manufacturer HTC
Posted 16-Sep-2019 21:30


Finalists Announced for Microsoft NZ Partner Awards
Posted 16-Sep-2019 19:37


OPPO Showcases New CameraX Capabilities at Google Developer Days China 2019
Posted 15-Sep-2019 12:42


New Zealand PC Market returns to growth
Posted 15-Sep-2019 12:24


Home sensor charity director speaks about the preventable death which drives her to push for healthy homes
Posted 11-Sep-2019 08:46


Te ao Maori Minecraft world set to inspire Kiwi students
Posted 11-Sep-2019 08:43


Research reveals The Power of Games in New Zealand
Posted 11-Sep-2019 08:40


Ring Door View Cam now available in New Zealand
Posted 11-Sep-2019 08:38


Vodafone NZ to create X Squad
Posted 10-Sep-2019 10:25


Huawei nova 5T to be available 20th September
Posted 5-Sep-2019 11:55



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.