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  1. #11
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    Hmmm...Any more continuing recoveries in Milk solid futures combined with continuing OK growth in the NZ economy may see interest rates bottoming out...Large jumps on the 5yr (+1.63%) and 10 yr (+1.81%) Interest rate swaps today tells us that Mr Market thinks the better than expected Dairy auction is a positive for future NZ economy.

  2. #12
    FEAR n GREED JBmurc's Avatar
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    SBS now has 3.99% 1yr fixed !!! wow
    "With a good perspective on history, we can have a better understanding of the past and present, and thus a clear vision of the future." — Carlos Slim Helu

  3. #13
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    Re-fixing my mortgage for the first time. Currently locked into a 6.09% rate. Looking at fixing 50% for 1 year 4.15%, and then 30% for 2 years and remainder floating. Thoughts on this plan? I think interest rates should drop again and be at there lowest this time in a year, but then Ive learnt you can never know whats going to happen
    "Gold is money, everything else is credit"- J.P. Morgan

  4. #14
    FEAR n GREED JBmurc's Avatar
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    Quote Originally Posted by skeet View Post
    Re-fixing my mortgage for the first time. Currently locked into a 6.09% rate. Looking at fixing 50% for 1 year 4.15%, and then 30% for 2 years and remainder floating. Thoughts on this plan? I think interest rates should drop again and be at there lowest this time in a year, but then Ive learnt you can never know whats going to happen
    hard to know that's for sure ,, looks like rates will be forced lower from the "Reserve Bank" ....but major Aussie banks also have issues round bad loans in the resources sectors and if the house market does fall in Aus property Bubble(and NZ) we could well see rates for these banks credit lines internationally go higher on credit downgrades etc >>

    Am looking to take on my debt in the near term I will be only fixing for 1yr and be hoping for round 4% as I'm looking to change banks(sick of Westpac) and get the cash incentive (which can run round 500-1000k per 100k loaned 2yr+ fixed etc)

    If you haven't signed up the new loans yet skeet I'd be calling round to the likes of ANZ,WP,BNZ,SBS and just see want they offer to entice you to their loan book ...then play of the best deal to your bank and see the rate drop ..
    "With a good perspective on history, we can have a better understanding of the past and present, and thus a clear vision of the future." — Carlos Slim Helu

  5. #15
    Member skeet's Avatar
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    RBNZ today held rates, but can see them being lower in a year than they are today. Currently with ASB and it is easier to stay than move, may do the ring around later today. With the current rates I would be looking at $171 extra in the hand so to speak, although this will then be put against our floating anyway.
    "Gold is money, everything else is credit"- J.P. Morgan

  6. #16
    FEAR n GREED JBmurc's Avatar
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    right if the loan isn't that big then it's not really worth it ....300k+ and it does become worth it
    "With a good perspective on history, we can have a better understanding of the past and present, and thus a clear vision of the future." — Carlos Slim Helu

  7. #17
    Member skeet's Avatar
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    If yah wanted to know how I got on. 200k @ 4.19% for 2 years, 100k @ 4.25% for 1 year with ASB. Bal floating.
    "Gold is money, everything else is credit"- J.P. Morgan

  8. #18
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    Quote Originally Posted by skeet View Post
    If yah wanted to know how I got on. 200k @ 4.19% for 2 years, 100k @ 4.25% for 1 year with ASB. Bal floating.
    Funny how different jurisdictions look at things differently. Was recently in Holland where my peers were talking about the option to fix for 10 years or fix for 20 years. The 10 year rate was 2.2% the 20 year rate 2.8%. My mate went with the 20 year rate on his new house.
    Wonder why we do not get these types of terms to be able to fix in NZ or at least why they are not common?

  9. #19
    Member skeet's Avatar
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    Wonder what the penalties would be if you broke it?

    EDIT: A quick google http://money.stackexchange.com/quest...in-netherlands shows the cost is very high! Above example of a euro 30k penalty to break a 10 year mortgage that is currently @ 6%! Must remember EU current interest rate is 0%. It may be possible that NZ ends up with 10-20y mortgages if we head this low.
    Last edited by skeet; 12-05-2016 at 07:39 PM.
    "Gold is money, everything else is credit"- J.P. Morgan

  10. #20
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    Quote Originally Posted by skeet View Post
    Wonder what the penalties would be if you broke it?

    EDIT: A quick google http://money.stackexchange.com/quest...in-netherlands shows the cost is very high! Above example of a euro 30k penalty to break a 10 year mortgage that is currently @ 6%! Must remember EU current interest rate is 0%. It may be possible that NZ ends up with 10-20y mortgages if we head this low.
    Thats right. My cousin has a 150k Euro mortgage at 5.1% fixed for 10 years and has currently got 5 years to go. His penalty is 18k if he were to break it but he is considering doing so.
    But the concept of longer fixing periods is interesting, it would be good if NZ had the option as it gives you more scope as a borrower.

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