Sharp five year fixed-rate home loans encourage people to lock down their repayments

When I bought a property 5 years ago all the talk from the experts was how interest rates were going to head above 8% and everyone should lock in the good rates now. Then rates proceeded to drop almost 2% instead of going up.

Crikey. Where to start. Churchill would have had people like you in mind when he noted that the strongest argument *against* democracy was a conversation with your average voter.

If you want state control over everything might i suggest moving to China or North Korea

Banks are keen to lock you in to a five year rate of 5%+ because they expect rates to stay static, maybe even fall. A 1-2 year rate is much more sensible at this point in time.

Standard USA home mortgage rates at the moment at 4.625% FIXED for 30 years, or 4.25% fixed for 15 years.Were being robbed by our Australian banks, and Kiwis go along with it.

Phil will be elated that houses will become more affordable BUT did not know that people wont have jobs to buy them.

3.99% for 1 year, 4.15% for 2 years, whats the point in fixing over 5 for so long!

If you like the idea of a 5 year rate, you dont have to associate that with being stuck in your current home.We settled our old and new houses on the same day, and transferred the mortgage over without breaking the rate. Easy.

So many people I know trust their bank managers to give them advice. Remember, Bank Manager=Salesperson.

We locked in for 5 years at 5.19 in Feb 2017. We chose this option because it will see our kids finished from school and leave home. We know exactly what our outgoings are, and we have increased our payments each time we get a pay increase, even $14 per fortnight makes a difference. ASB lets you do this up to three times a year with no fees. For us its about being in control for this expensive time in our lives, then it will be split fixed and floating to get rid as quickly as possible yeehah!

Made a big mistake locking into a long fixed rate 5.99 for 5 years finish next year

Because that is governed by RBNZ. RBNZ are owned by the Govt but manage themselves.

And the interest is tax deductable!

It amazes me how naive some people are. They are there own businesses out to make a profit, not some charity or do good community group

If you fix for 5 years at 5.39 instead of 2 years at 4% (possible right now), you have to assume that for years 3-5 you are going to pay an average of roughly 6.5%. Thats possible, but in the current climate it looks damned unlikely.

Every interest and inflation prediction in the last 10 years + has been wrong. The only economist I listen to is Tony Alexander.

Even their current 1 year rate is double the OCR, and that is likely to drop. So they are making more than 100% return on every dollar they lend!And if anyone they hook onto a 5 year fixed rate then thats just the cream on top.

He was one who advised to fix 6 years ago. Glad I did not take his advice, the best rates since have been the 12 months.

or that more business will struggle and go bust in a downturn economy!

Im Dutch, and back home most people fixed for 10 years.Interest rate is about 1.7% for 10 years at the moment.And as far as I know its still tax deductible, although that is going to change.Our interest rates in NZ are still way too high.