There is currently some totally irrational term deposit pricing out there.
1 Year Term Deposits are paying 4.50% and banks are lending out at 5.50%. Wholesale rates are at 2.90% so Term Deposits are being priced at least 1.60% above where they would usually be priced.
From my perspective it appears to be driven by Kiwi Bank.
The mortgage market has tightened up somewhat but provided you have strong income and a stable job history or no debts, then 95% is still an option for you.
We now have 4 or 5 different options if you are borrowing over 80%. In all instances they only apply to people with decent incomes – household
Einstein marveled at the compound effect of interest rates for good reason.
Over the life of a $300,000 mortgage you will pay over $360,000 in interest! When you are dealing with such big numbers the cost of getting it wrong can easily run over $80,
2009
Have you been sold an “Interest Rate Swap” Lemon?
Filed under: Business Banking, Interest Rates, Investment Property
One area that has concerned me the past two years is the use of financial derivatives into the Rural and SME Business markets. Bank bill priced term loans with Interest Rate Swaps attached is like putting lipstick on a pig
Having the right Mortgage Strategy can save you thousands in interest every year let alone over the life of a mortgage. That’s why we think it always pays to get the best possible advice. JB (author of this blog) is the former General Manager Products at ANZ National Bank and has managed over $15 billion
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