Interest rates
| # | Post |
|---|---|
| 1 | ASB announced increases this morning to fixed home loan rates and others will follow. If you can fix now then do so as they are not going any lower. Rates have been artificially low for a while and these new ones are still well under norm (whatever that is!). Banks stress loans at around 6% so please ignore any panic type articles about ability to pay. Medium term we are still looking well below average for the last five years and over 30 years the average rate is over 7%, I can't see us getting back there. jeffqv - 2021-07-14 12:11:00 |
| 2 | I am glad that I invested my last term investments for a very short term. I guess that they will be putting the rates up for a few years. trade4us2 - 2021-07-14 13:14:00 |
| 3 | Yea banks are always making lots of money, that's what they are for, the investment rate will creep up very slow over the next 5 years, mortgage rates will creep slightly more over the next 5 years, If they moved too fast New Zealand will crash, don't believe all the hype out there, yes we are spending but it is our own money, we need exports to do well to get the economy stable at the moment we are living on dreams. Wait a few years till there is huge retirement population. Bring it on. msigg - 2021-07-14 17:07:00 |
| 4 | jeffqv wrote:
Thanks Jeff. johnston - 2021-07-14 17:42:00 |
| 5 | thanks sweetgurl108 - 2021-07-14 20:01:00 |
| 6 | jeffqv wrote: Having said that, we had a mortgage back in the 20%+ days..... lythande1 - 2021-07-15 08:31:00 |
| 7 | lythande1 wrote:
Exactly the point of my post, banks stress at around 6% to ensure affordability, we are not even close to that! jeffqv - 2021-07-15 15:06:00 |
| 8 | lythande1 wrote: In which case they either lied about their income / expenditure when applying for a mortgage or their circumstances have changed, in which case they should reevaluate their finances.... sparkychap - 2021-07-15 16:06:00 |
| 9 | sparkychap wrote:
dont you have to show the lender proof of income bank statements etc to show how much is coming in and how much is going out? cathi - 2021-07-15 16:29:00 |
| 10 | cathi wrote: tweake - 2021-07-15 16:57:00 |
| 11 | cathi wrote: Income, but outgoings are estimated and assumes you declare all debts. sparkychap - 2021-07-15 17:00:00 |
| 12 | True inflation is out of control, money printing will be stopping. People have and still are spending up a self gratification storm. If the banks are stressing loans at 6% now then that will also have to go up as interest rates rise. I hope this country trains more mental health practitioners because we are going to need them. lakeview3 - 2021-07-15 18:15:00 |
| 13 | jeffqv wrote:
So you're saying the banks think people have a spare $185 per week A 25 year $500,000 mortgage at 3.19% is $558 per week. loud_37 - 2021-07-15 20:46:00 |
| 14 | Some good deals on new builds under 2% for 3 or 4 years and lower deposits. Edited by ash4561 at 9:59 pm, Thu 15 Jul ash4561 - 2021-07-15 21:57:00 |
| 15 | lakeview3 is onto it. We are living like no tomorrow. We better slow spending fast. I don't envy big mortgage holders. msigg - 2021-07-16 07:12:00 |
| 16 | If we took housing ‘costs’ into the calculation of inflation, it wouldn’t be a pretty picture. Anyone noticed petrol is back up there? lakeview3 - 2021-07-16 08:04:00 |
| 17 | msigg wrote: yes and people are after paying themselves stupid……I wonder when the spending party will end? lakeview3 - 2021-07-16 08:05:00 |
| 18 | lakeview3 wrote: We do. sparkychap - 2021-07-16 08:39:00 |
| 19 | I always calculate the affordability of the mortgage at 16% as a safety margin. It was about 9.25% when we bought our first house and a little before that my mate was paying 10.5%. Not long ago either, we bought in 2008. tygertung - 2021-07-16 08:39:00 |
| 20 | sparkychap wrote:
No they don’t. loud_37 - 2021-07-16 08:54:00 |
| 21 | lakeview3 wrote:
One of the biggest problems with Afterpay, laybuy, zippay and all the others are they’re not regulated so they don’t appear on any credit check list so the bank doesn’t know about them and can’t use them in their calculations to see if you can afford a mortgage. loud_37 - 2021-07-16 08:59:00 |
| 22 | loud_37 wrote: Oh yes they do. (Puts on best Pantomime voice) sparkychap - 2021-07-16 08:59:00 |
| 23 | I have a good memory for some of the conversations I have had over the years. My mate was lamenting about what interest rates used to be when we were paying over 20%. I remember him saying, if they came back down and stabilized at around 14% we would be ok. laurelanne - 2021-07-16 09:06:00 |
| 24 | loud_37 wrote: Whilst you're correct that by not credit checking when they lend, these companies leave no footprint in your credit file or score, but the bank will ask you detailed questions on your outgoings, so its up to the borrower to declare. CCCFA will tighten up this process even more. sparkychap - 2021-07-16 09:58:00 |
| 25 | loud_37 wrote:
When we first borrowed to buy our business in 1985 we were not allowed to have any accounts at any other bank. I can’t remember when we got our credit cards but they had to be through them too.That rule applied up until we sold, 35 years later... lovelurking - 2021-07-16 10:20:00 |
| 26 | loud_37 wrote:
I would hope that most people with a mortgage would have a spare $185 a week (and ideally already be putting that on the mortgage). blands70 - 2021-07-16 10:28:00 |
| 27 | blands70 wrote: tweake - 2021-07-16 10:31:00 |
| 28 | sparkychap wrote:
Yes... just because the info is not accessible via a credit check etc does not mean you are not required to disclose it. The questions in mortgage / loan application are generally open ended enough to require disclosure of a Afterpay type debt. onl_148 - 2021-07-16 10:41:00 |
| 29 | blands70 wrote:
Not everyone will, young families etc. csador - 2021-07-16 12:03:00 |
| 30 | onl_148 wrote:
When i got a top up on my mortgage last year, they went through my statements, asked about afterpay and all sorts of regular transactions. So unless you are doing these through another account with a different bank, im sure they can see them Edited by csador at 12:04 pm, Fri 16 Jul csador - 2021-07-16 12:04:00 |
| 31 | There’s a lot of people in here that think people disclose everything and don’t stretch themselves to the limit, I think you may be living in a fantasy world. I bet more than 60% of people are on the limit of not being able to afford groceries if things change just a little bit. loud_37 - 2021-07-16 12:11:00 |
| 32 | loud_37 wrote: you are correct. I know of people with large mortgages, they still buy their lunch every day, go out for drinks, all drive late model vehicles and then wonder why they don’t get anywhere. You actually have to be quite disciplined. Some of these people I feel are in denial and they aren’t getting any younger. It seems like they drink/smoke/vape/eat out to cope with the unaffordable life they are refuse to make any changes to. lakeview3 - 2021-07-16 12:26:00 |
| 33 | lakeview3 wrote:
The road to retirement seems sooooo far away to younger people. I just hope the spenders don't hit that great event in their lives with a mortgage hanging over their heads or needing to rent. I am so happy that we had a freehold property when we retired. Makes life much, much easier. My advice would be to prioritise paying off the mortgage and then put some money into savings to supplement their retirement income. Younger people today have enough time to do that. Edited by kitty179 at 12:33 pm, Fri 16 Jul kitty179 - 2021-07-16 12:32:00 |
| 34 | blands70 wrote: are you serious? If they had a spare $185 they would already be putting it on their mortgage. lakeview3 - 2021-07-16 12:33:00 |
| 35 | Some people are seriously out of touch and living in another world by the sounds of it. lakeview3 - 2021-07-16 12:34:00 |
| 36 | kitty179 wrote: these people I am talking about are either the same age as me or older. Believe it or not many big spenders aren’t the young ones. And yes, definitely pay the mortgage off first. This is one reason why I haven’t had a kiwisaver because I am self employed and while I still had debt there was no point ‘saving’ money elsewhere. Some people need to let go of the need to worry about what other people think. I learnt an early lesson from my dads multi millionaire friend…..this man was often the more underdressed in the room, he drove around in an 11 year old VW golf……..if you saw him you would never have realised that he was so wealthy. Edited by lakeview3 at 12:49 pm, Fri 16 Jul lakeview3 - 2021-07-16 12:47:00 |
| 37 | lakeview3 wrote: Some people are seriously out of touch and living in another world by the sounds of it. sparkychap - 2021-07-16 12:54:00 |
| 38 | lakeview3 wrote:
Yes, that's what I said ... blands70 - 2021-07-16 12:54:00 |
| 39 | lakeview3 wrote: lovelurking - 2021-07-16 13:00:00 |
| 40 | blands70 wrote: good grief, maybe re read your post then lakeview3 - 2021-07-16 13:00:00 |
| 41 | lovelurking wrote: exactly. I have a very wealthy friend who hasn’t learnt that lesson….i am sure when she walks in the door people are thinking kaching. ????That’s one disadvantage of living in a small town lol. Pays to be understated in my opinion. Each to their own I guess. Edited by lakeview3 at 1:04 pm, Fri 16 Jul lakeview3 - 2021-07-16 13:04:00 |
| 42 | sparkychap wrote: oh you’re putting that ON? ROFL! lakeview3 - 2021-07-16 13:05:00 |
| 43 | lovelurking wrote:
???? I have been known to dress down, (like I live under a bridge), and go shopping at one of the better ladies fashion shops. I watch the assistants side-eye me, then look to one another, akin to a silent rock-paper-scissors, until one sighs and comes and sees to me. Often they need to help carry my purchases to the car???????? thumbs647 - 2021-07-16 13:46:00 |
| 44 | lovelurking wrote:
Anyone can buy anything as credit is so easy to get, can they afford it is another question. loud_37 - 2021-07-16 14:17:00 |
| 45 | loud_37 wrote:
Perhaps parents should educate their children about budgeting and the true costs of borrowing money, about the same time as they tell them the facts of life would be a good time to start. lovelurking - 2021-07-16 14:47:00 |
| 46 | thumbs647 wrote:
Ahh, reminds me of Julia Roberts in An Officer and A Gentleman! lovelurking - 2021-07-16 14:52:00 |
| 47 | lovelurking wrote: Really? I think its more like the shopping scene in Pretty Woman....after all she wasn't in An Officer and a Gentleman. sparkychap - 2021-07-16 14:54:00 |
| 48 | Ohhh, yes sparkychap you are right again! ???????? lovelurking - 2021-07-16 15:36:00 |
| 49 | lovelurking wrote: It's OK, considering I've just admitted to an intimate knowledge of romcoms, I won't criticise...let's just keep this between the two of us, no-one else needs to know. sparkychap - 2021-07-16 15:41:00 |
| 50 | sparkychap wrote:
???? ???? Yeah, that’s a good idea... lovelurking - 2021-07-16 15:53:00 |
