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whatsup
22-03-2005, 09:30 AM
As an aside( in order to help fellow property investors) what margin rates do we suffer from our friendly bank, OCR + margin =interest rate.
For me my fixed 5 yr term Feb 04 is 8.3%
My floating rate OCR + bank liquidity margin (usually about.20%) + borrower margin 1.5% currently totalled = 8.55% for under 1/2 mil, over 1/2mil its .10% less.

GBPNZDBASISTRADER
21-04-2005, 10:16 PM
G'day..
If you are trying to ascertain what margin there is, you need to compare apples with apples. That is, you have a fixed rate term, so you need to compare with the applicable int rate swap for that period (for you - 5yrs).. forget about the cash rate. FLoating rate mortgages are off the 90d bank bill rate. So to work out the margin for your loan, you would need to know what the 5yr swap rate was on or about Feb 04. (today it closed at 6.685 (21/4)), you then need to add a liquidity margin into it - which varies depending on tenor of loan, plus a general bank margin.. which will vary from bank to bank...