first home buyer advice

[sanctus671]

Thanks for the replies everyone! Very helpful and reassuring to read these.

For interest rates, my concern is if something like 08/09 happens again where they shoot up to 10+% for several years. Given that we are in one of the longest bull markets in history with interest rates current at an all time low, it seems like the risk for that is reasonably high over the next 5 years. It means a weekly repayment of $454 would be closer to $1000 which would be pretty hard to manage. That's why my thought on fixing the rate for as long as possible would reduce that risk if something were to happen in the next 5 years. I'm obviously all for a lower interest rate, but would like to hear your thoughts on the risk behind it if there is any.

Also, how were you able to get the cash bonus'? is the 10k from switching to different banks?

[JBmurc]

Thanks for the replies everyone! Very helpful and reassuring to read these.

For interest rates, my concern is if something like 08/09 happens again where they shoot up to 10+% for several years. Given that we are in one of the longest bull markets in history with interest rates current at an all time low, it seems like the risk for that is reasonably high over the next 5 years. It means a weekly repayment of $454 would be closer to $1000 which would be pretty hard to manage. That's why my thought on fixing the rate for as long as possible would reduce that risk if something were to happen in the next 5 years. I'm obviously all for a lower interest rate, but would like to hear your thoughts on the risk behind it if there is any.

Also, how were you able to get the cash bonus'? is the 10k from switching to different banks?

Generally, I received 3k from shifting banks ASB to ANZ etc ...one bank even paid me $2k to keep lending with them rather than shift
that's how Morg Brokers make a living from cash kickback from getting the bank new business ..

the banks make you sign an agreement that if you shifted from the bank within a period of time you must payback the cash ...I've found it use to be 2yrs now its 3yrs .... they also like you to bring your accounts across and have your income paid into one of their accounts (But I never did)

If you are taking out a new loan to buy a house and have a good deposit I'm sure your get some cash to help pay the legals etc

.....As to the rates we have another GFC more likely rates will go even lower not higher as all that does is make the matter worse ..
I was paying 7.5% in 2007 didn't go higher after 08 now did it ,, the Central bank Financial system is all about Growth at all costs and keeping the debt fueled bubble from popping just look at Japan where the central bank is the biggest holder of BONDs and Now A Top-10 Shareholder In 50% Of All listed Japanese Companies..... we are all going to turn japanese IMHO

No way any NZ Govt is going to allow interest rates to head higher with the amount of debt held buy not only everyday kiwi voters but companies and councils Dunedin has over 200mill in debt ..whats Aucklands ??