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Mortgage Rates - What to do

Mortgage Rates - What to do

Old Jul 31st 2013, 10:35 am
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Default Mortgage Rates - What to do

Mortgage deal is up for renewal at the end of August, can't decide what to do.... the options are the low fixed 1 year 4.89%, a variable 5.65% or fixing it for three years at 6%.... Between the three options i'm looking at $100 difference between the lowest and highest a fortnight....

They keep saying the rates are going to go up, but yet it's August tomorrow and they still haven't... What have other people done? If it does go up, 6% for three years could be good...
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Old Jul 31st 2013, 10:50 am
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Default Re: Mortgage Rates - What to do

can you split the mortgage?

fix some of it and use one of the other options for the remaining?
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Old Jul 31st 2013, 11:36 am
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Default Re: Mortgage Rates - What to do

Originally Posted by MrsFychan View Post
can you split the mortgage?

fix some of it and use one of the other options for the remaining?
That's an option yes.... I can explore that.... I just wonder when they say it'll go up, how much will it.... when we came out in 2007, we got 8.75%... will it go that high again or higher or just 1-2% over the next few years....

I suppose if I knew that answer, I could make a fortune....
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Old Aug 1st 2013, 1:23 pm
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Smile Re: Mortgage Rates - What to do

I don't know what the RBNZ will or won't do but historically floating is cheaper than fixed because the bank charges a risk premium. The question is could you afford a period of much higher rates or are you forced to pay the risk premium?

Also are you sure those are the best rates you can get? I don't know your exact situation but they look a little steep.
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Old Aug 1st 2013, 10:37 pm
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Default Re: Mortgage Rates - What to do

Originally Posted by Charismatic View Post
I don't know what the RBNZ will or won't do but historically floating is cheaper than fixed because the bank charges a risk premium. The question is could you afford a period of much higher rates or are you forced to pay the risk premium?

Also are you sure those are the best rates you can get? I don't know your exact situation but they look a little steep.
Those are the rates my current lender Kiwibank are offering.... they are fairly comparable i believe....
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Old Aug 1st 2013, 11:26 pm
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Default Re: Mortgage Rates - What to do

Originally Posted by simonmarkellis View Post
Mortgage deal is up for renewal at the end of August, can't decide what to do.... the options are the low fixed 1 year 4.89%, a variable 5.65% or fixing it for three years at 6%.... Between the three options i'm looking at $100 difference between the lowest and highest a fortnight....

They keep saying the rates are going to go up, but yet it's August tomorrow and they still haven't... What have other people done? If it does go up, 6% for three years could be good...
My instinct would be fix it for a year and pay of as much of the capital as I could in the that time as well.

With the banks changing their home loan deposit requirements, there will be a political reluctance to raise interest rates on top of that as well. Making home affordability even more difficult. So any major increases would be unlikely.

Of course I could be talking complete bollocks.
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Old Aug 2nd 2013, 12:15 am
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Default Re: Mortgage Rates - What to do

Originally Posted by Catchafire View Post

Of course I could be talking complete bollocks.
I'm fluent in bollocks..... worked for years on my boss!

Thinking of hedging my bets and splitting half and half, 50% at 4.89 and 50% at 6.05...
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Old Aug 2nd 2013, 10:00 am
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Default Re: Mortgage Rates - What to do

What's the plan, are you going to live there for the foreseeable? Do you have any investment properties to consider and any plans that require reasonably significant finance in the coming years?

I suppose it depends on a number of factors.

We've just done the maths today on our lives for the next couple of years and were plumping for a 24 month deal at 5.4% - P & I.

Due to a number of factors, we're then going to reassess towards the end of this deal.

Last edited by TommyLuck; Aug 2nd 2013 at 10:06 am.
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Old Aug 2nd 2013, 11:44 am
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Default Re: Mortgage Rates - What to do

Originally Posted by TommyLuck View Post
What's the plan, are you going to live there for the foreseeable? Do you have any investment properties to consider and any plans that require reasonably significant finance in the coming years?

I suppose it depends on a number of factors.

We've just done the maths today on our lives for the next couple of years and were plumping for a 24 month deal at 5.4% - P & I.

Due to a number of factors, we're then going to reassess towards the end of this deal.
Been here 6 years, no plans to move at the moment... certainly won't be going back to the UK...
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Old Aug 2nd 2013, 12:18 pm
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Default Re: Mortgage Rates - What to do

ASB are offering 5.89 for 3 years so push your bank a bit more. 4.89 1 year is good though.
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Old Aug 2nd 2013, 12:27 pm
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Default Re: Mortgage Rates - What to do

Splitting it is probably best, also negotiate with your bank, if they're their advertised rates you should be able to bargain better rates, it seems a given here.

They keep saying rates will go up, & historically they are low, but internationally they are high, raising the rates here risks inflating the kiwi$ dollar still further.
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Old Aug 2nd 2013, 1:44 pm
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Default Re: Mortgage Rates - What to do

Originally Posted by pleccy2000 View Post
ASB are offering 5.89 for 3 years so push your bank a bit more. 4.89 1 year is good though.
ASB have offered me a .35% discount on advertised rates.
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Old Aug 3rd 2013, 12:01 am
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Default Re: Mortgage Rates - What to do

Originally Posted by TommyLuck View Post
ASB have offered me a .35% discount on advertised rates.
5.7% on 3 year?
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Old Aug 3rd 2013, 5:46 am
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Default Re: Mortgage Rates - What to do

Originally Posted by pleccy2000 View Post
5.7% on 3 year?
5.89% for 36 months.

Not sure if the advertised rate has changed since I got the quote?

I have until COB Monday to take it.

Might review if it has.
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Old Aug 3rd 2013, 10:28 am
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Default Re: Mortgage Rates - What to do

Gonna have a word on Monday.... see where it gets me...
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