OCR Rate

[McDuck]

To paraphrase this morning's comments from Gareth Morgan, the interest rates are now becoming of lesser importance as security of income starts to suffer. In other words, if you loose your job a few percent difference in mortgage rates will make little difference 'cause you're down the tubes anyway

but it means that those of us with 100%secure incomes (short of getting myself fired) will find life a little easyer.

[yod]

and onwards and upwards go the petrol prices

$1.63 for premium now is it?

[yungatart]

but it means that those of us with 100%secure incomes (short of getting myself fired) will find life a little easyer.

Trust me, a weekly/fortnightly/monthly wage packet/salary is NOT a 100% secure income.

[Badcat]

Banks are the most conservative institutions in the world. They would never do such a thing. Also, they got us into this shit in the first place. Bastards.

fuck. i agree with finn.
i'm going off my meds.

k

[WRT]

The Official Cash Rate... Rate? Just like the new Auckland University of Technology University!

Hmmm, I wonder what the 'B' stands for in ASB Bank?

[Hoon]

My point is this; Kiwibanks lowest rate last week was 5.99%. With an OCR drop of 1.5 to 3.5, Kiwibank drops it's lowest rate to 5.69 per cent. Big deal.

Don't forget that Kiwibank have already dropped their rate from 6.49% last Friday in anticipation of the OCR.

[firefighter]

yeah but they must have already factored in the rate drop. Bollard was on a promise to drop it at least 100 points. 150 was a nice surprise and it's only about 70% of the OCR rate drop that's passed through (in my experience with Nat Bank anyway)... so the extra 50 points would concvert to an additional saving of 35 points off the rate... sounds about right.

I got notice from the Nat Bank this morning of my floating interest rate drop - effective Feb 16... down to 7.25%... and that's on the back of the LAST OCR announcement in December. It takes them about 6 weeks to bering changes into effect - and notice arrives on the day of the next cut. Talk about average performance...

yes I am stuck with the assholes too, I wish i'd gone with kiwibank now, I can't change because as it is I broke out of my fixed rate a few months back and have to wait until I can re-finance with kiwibank- which is what I will do and should have done from the start- I bloody well hate hindsight...oh well

[McDuck]

Trust me, a weekly/fortnightly/monthly wage packet/salary is NOT a 100% secure income.

No, but i know that my boss has plans for me for the next 2 years at least, IE i am staying where i am.

[Starky307]

No, but i know that my boss has plans for me for the next 2 years at least, IE i am staying where i am.

That could all change.

Right now being a midwife or an undertaker is about the only thing guaranteed. And guess what, it will get worse before it gets better.

[McDuck]

That could all change.

Right now being a midwife or an undertaker is about the only thing guaranteed. And guess what, it will get worse before it gets better.

Yes it could, but i know enough about my employers company to feel safe.

[Fatjim]

What pisses me off is Westpac want a mate to pay $31,000 to break out of his fixed rate loan. We worked that if he broke out yesterday for that fee he would reduce his interest payments over the remaining term by only $21,000. That means if he broke his fixed term, the bank would make an ADDITIONAL $10,000 from him. The mortgage rate would have to fall to about 3% rather than the 6% we factored to break even.

Now that is genuinely ripping people off.

[ManDownUnder]

Classic ... interest rates drop... mortgages are cheaper... and we still find plenty to bitch about...

Gotta love KB - tough crowd...!

[Starky307]

Yes it could, but i know enough about my employers company to feel safe.

Then I hope you will not be affected.

On a brighter note, if you are thinking of buying a house then just sit back and watch the prices tumble.

[Brett]

Aren't we all?

Too true.

The banks are like the oil companies, quick to increase...always full of bullshit and excuses when it comes time to drop the prices...much rather have nice fat margins.

[Colapop]

OCR drop pretty much means (in layman's terms) Mortgages won't cost as much, the NZ dollar goes down against foreign currencies = no real saving coz you end up paying more for fuel and food and anything that's imported. The GrubbyMitt(s) cannot make the OCR a negative value just empty what's already their and borrow more or charge more in taxes. Nothing's changed - just where the money gets paid to...