Yep. That'll send those tax free capital gains on your house, that you frequently complain about, even higher.
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Yeah hate those ...dam you free capital !!!!!
Just out of curiosity if your mortgage came up for renewal now for how long would you fix? I thought 3 might be prudent but the rate I got offered by ASB for 2 years sounds interesting.
Fixed 12 months 2.4600
Fixed 18 months 2.700
Fixed 24 months 2.8500
Not asking for financial advise. Just a personal opinion about mortgage rates ;)
With NZ on the edge and not safe from another covid disaster I can’t see RBNZ lowering rates just yet …..will banks keep their rates down for longer as well?
My two 1yr fixed term loans came up on the 16th of this month I locked it 2.19% with WP week earlier ... quite a jump to 2.55% at present personal I've always just gone for the lowest rate .. I wouldn't count out nil increase from the RBNZ and pure move from the banks to increase profits ...is the quite season for loans Vs the summer months ... wants the bet we will see bank offer sweet summer deals ..
Thanks for the feedback. Despite having been active in the financial markets for over 30 years mortgages are still quite new to me. I've certainly changed my view a bit from being conservative and thinking 3+ years might be the best forward to thinking splitting it half between 1 and 2 years. The jump in rates between 2y and 3y is quite significant.
Similar question but currently using total money with 100k no interest received and none charged on mortgage, thinking it might be time to use the 100k elsewhere and wondered if anybody thought this was smart or not, would probably end up replacing with 100k for a 2year fixed term.
With interest rates on Term Deposits so low, why do you want to lock up $100K of cash for 2 years? Gone are the days where you could get 9% with cash and it's not very likely we will see even 5% in the next 10 years.
I had over $1M in cash term deposit 3 years ago that I had to break (yes you lose most of the interest) to buy a house that wifey wont at an auction. It was sold under GV and while hind sight is 20/20, it certainly did a lot better than money in the bank. Not saying future house prices would repeat the same gains but there is a lot to be said about "cash is king". It is king if you're presented with an opportunity.
Rates cant go much higher without really hurting NZ businesses & Consumers ...we are a HIGH COST(HIGH DEBT) -LOW WAGE economy .... only matter of time till we will see our credit rating come under pressure when it all starts to unravel (most likely from a Global correction thats due any month now) ...
IMHO RBNZ will do a small raise next meeting ...that will be followed by a reduction then negative rates during 2022 as it all comes apart >>