ASB has cut its two-year mortgage rate by 10 basis points to 5.45%, the new lowest advertised 'no-strings-attached' two-year rate offered by a bank.
TSB is the only bank offering a lower rate than ASB, although its 5.30% offer requires at least a 20% deposit.
ASB said the change was effective from August 11.
At the same time, it has ended its NZ Olympic 4 year fixed rate special, which had a rate of 5.79%.
See and compare all mortgage rates offered to the public here.
ASB has also removed its 4.10% 4 month term deposit rate, reverting to 3.25% for this term, which is the same offer it has for all terms 3-5 months.
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12 Comments
"No strings"....bollocks.....the string is one round the borrower's neck that will strangle them when the inflation arrives.....as it will.
That's why these parasites are offering a low bait.....catch the last of the suckers...get them to buy property at the bloated prices....save the bank balance sheets...keep the credit scam going...
Smart Kiwi are using these offers to escape debt...and so they should.
Meanwhile Kiwi building costs are continuing to rise...Labour dept scaffolding 'tax' has added $4000 to a house build cost...when they could have enforced the use of the harness by roofers....not the Lab dept bosses way..they were out to score points in the ministerial shakedown...a piece of theatre...
The very best advice to young Kiwi.........Do Not plan on a new house....dont be a sucker.
Housing is also a necessity, but it does not follow that it is a high-yield investment. Rather, it has become a sinkhole for hard-earned, scarce cash. Read more
Then note the need to follow the diversion of NZ Government DHB healthcare cash to make this privatising the profits endeavour workout -
The Stewart family had long been investors in the Acurity assets, including hospitals in Wellington, the Hawke's Bay and Tauranga, as well as clinical practices in Auckland, Stewart said.
He saw further growth in the private sector and that was part of the reason for a company that needed "a whole lot more cash . . . that's why we feel that now is a good time to make an offer".
How much pork do the National Party owe this private family investor? - the Stewart family cannot be expecting private health care insurance to be capitalising their investment - The old Wakefield Health recently noted a downturn from this sector but an increase in contracts from the DHB and more ACC work.
Speaking of Olympics
Olympic chiefs believe the $60 million of funding given to New Zealand athletes has paid off at the London Games.
http://home.nzcity.co.nz/news/article.aspx?id=151984&fm=newsmain%2Cnrhl
Yikes!
$60 Mill for 13 medals. Wow what a pay-off! I'm over the moon!!!!
yes .. it's a common scam .. seeking back-links to another web-site .. site-owners employ cheap-labour (work from home .. must be reliable .. have computer .. typing skills) to post nonsense garbage (filled with links), on forums .. chaston needs to delete this .. unless he's been paid for it ..
Not sure if Google still use it .. but in the early days a site was ranked according to the number of external sites that referenced it .. ie: had links to the subject site ... they're called back-links .. less than reputable SEO operators use this technique ...
FYI from an emailer:
You will be aware that Australia recently made it illegal for their banks to charge mortgage exit fees, and after wanting to reduce my mortgage here in NZ (after reading your article some months back) I was astonished at what my exit fees would be.
My question is: Is this something that would work here and if so I'm thinking of starting a petition/ groundswell to get some media interest around it and then hopefully we may get a government to consider it here? Would love to know your thoughts on this matter.
Many thanks
http://www.canstar.com.au/exit-fees/ http://www.smh.com.au/business/banking-and-finance/exit-fee-ban-shaves-157m-off-banks-income-20120621-20q4b.html
FYI here's the official detail of what happened in Australia.
http://www.bankingreforms.gov.au/content/Content.aspx?doc=faqs.htm
cheers
Bernard
Hi.
I actually don't think break fees for fixed mortgages are unfair, as long as they're worked out in a fair way.
Those wanting to avoid break fees should float.
Remember, Australians were having to pay break fees on floating mortgages, which is unfair. That's not the case here.
cheers
Bernard
FYI my emailer responds:
Yes well I stupidly fixed a couple of years back which is very painful.
> However, the Aussies have done it so why couldn't it work here?
> Come on Bernard you seem to be a warrior for much of the unfairness that I
> think happens in NZ, especially compared to Oz. Do you think the media would
> get behind this? ;-)
Your talking about two distinctly different things here Bernard.
Exits Fees are charged by some banks when you leave them within a certain length of time usually 3 years.
Break Fees are economic costs incurred by the bank when you ask to break a fixed rate loan before it's maturity and the banks incurrs costs to relend that money to someone else at a loss (if not a loss then the break fees are sometimes minimal if at all).
The break fees are very valid however the exit fees are debatable. In all honesty in this competitive environment a good customer with a reasonable amount of lending should be able to refinance their loan to another lender for a better rate and receive a cash contribution to cover these break fees (usually just a few hundred dollars) plus more.
Australia was quite a different story. I sold my house in Brisbane and repaid the loan within 3 years and was charged $900 on each loan split I had and these loans were all floating. Australian banks also love their application fees and ongoing monthly or yearly charges. As most well travelled people know Australia is also a very hard place to do business in many respects. It's a much more pleasant banking experience in New Zealand.
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