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Fix or float .... mortgage

Fix or float .... mortgage

Old Mar 28th 2014, 12:46 am
  #16  
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Default Re: Fix or float .... mortgage

Originally Posted by madao View Post
So, we did manage to lock in a rate and we did complete on the house today.

We also seem to have ended up on a 3 year fixed rate of 6.4% instead of the 6.9% we were expecting.

Looks like rather than charge us the low equity rates we have been given their standard rate and still received the further 0.25% discount they offered us on top too.
Nice work.

Based on my borrowing value which is approx $330,000 this 0.5% would save $109 a month, which pretty much equates to my saving of $2,500 over 24 months.

As with most things that aren't everyday items, don't ever pay the price the price tag says it is.
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Old Apr 15th 2014, 1:51 am
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Default Re: Fix or float .... mortgage

HI Tommyluck,
You appear very informed on this whole NZ mortgage lark! We were put in a difficult position by our dear friends at Westpac, too long a story, but we are now in a position to remortgage, just interested, as I fully intend to try to do this without a mortgage broker, on how receptive the banks were to haggling? Which ones did you approach?
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Old Apr 15th 2014, 3:23 am
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Default Re: Fix or float .... mortgage

Originally Posted by qssue View Post
HI Tommyluck,
You appear very informed on this whole NZ mortgage lark! We were put in a difficult position by our dear friends at Westpac, too long a story, but we are now in a position to remortgage, just interested, as I fully intend to try to do this without a mortgage broker, on how receptive the banks were to haggling? Which ones did you approach?
In the end we had ASB and ANZ in a head-to-head after others fell by the wayside for various reasons.

Of course every scenario is different and different mortgage providers will view particular circumstances differently. For instance ANZ wanted us to cancel our UK credit cards even though we had a zero balance and they hadn't been used since we got to NZ.

ASB didn't even bother factoring in the very cards.

Cancelling was a hassle with the credit card providers I used in the UK - plus it's always useful to have a plan Z, when in dire need.

Anyway, in the end the ANZ and ASB went toe to toe on the rate, which was reduced from the advertised rate at the time with ASB.

They both also offered a $2,000 rebate for signing up. ANZ upped their initial offer $1,500.

When all was told and we'd drove the rate down as far as it they would go, they both matched each other on everything else, except the UK credit card palaver.

Therefore ASB won out, as is was less bother.

In essence both wanted the business and were willing to be flexible to win our business;

ASB because we also bank with them and want to keep as much of our business as possible.

ANZ because we banked with a key competitor and wanted at least something from us.

A key factor in this is that initially there were several mortgage providers willing to business with us even though neither me nor my wife had a job at the time, though we both had to prove we were looking and had had conversation with business, recruiters and the like.

So it was clear from the off that there was a reason they wanted our business, it was then up to us to gather as much information as possible to get the best deal.

You hold the cards, they want your business (within reason). It just depends on your time and inclination to use the factors at your disposal in order to go back and forth.
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Old Apr 15th 2014, 3:31 am
  #19  
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Default Re: Fix or float .... mortgage

Thank you, perhaps you are missing your calling..... TL brokers!!!!!!
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Old Apr 15th 2014, 3:37 am
  #20  
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Default Re: Fix or float .... mortgage

Ha!!

As I said earlier in the thread, when you make it tangible - how many hours you put in v. how much money you're saving - it becomes a worthwhile, less stressful and more meaningful exercise.
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Old May 6th 2014, 7:00 am
  #21  
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Smile Re: Fix or float .... mortgage

Walls Street Journal notes lenders are reducing their margins and not passing on increased financing costs: http://blogs.wsj.com/economics/2014/...all-with-rbnz/ . It'll be interesting to see where they have made efficiencies, I wonder have moves in the OCR increases made banks price risk at a lower rate as they feel the market has stability or if this is really chasing market share.

Also looks like BNZ are about to start a sub-prime lending scheme with government backing.
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Old May 8th 2014, 1:04 am
  #22  
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Smile Re: Fix or float .... mortgage

Some speculation RBNZ may reduce LVR limits tomorrow and of course probably hike rates slightly now some commodity prices have weakened. There appears to have been very little slowing of house prices to date, rate rises have been slow and the improving outlook banks have (because they may have felt LVR and rates mitigated risk) have not has to pass on rises in full.
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