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Thread ID: 118527	2011-06-08 22:46:00	Interest rates...	beetle (243)	PC World Chat

Post ID	Timestamp	Content	User
1207874	2011-06-08 22:46:00	Can sumone explain what this means? the reserve bank etc keeping the low 2.5 whatsit.... how does this affect morgage rates ? i have never understood why this bank gets to tell nz what they should do, bank / money wise...... but is this rate being that low really good for us nz's? my fixed morgage rate is up for renewl in july, i have been sent a reminder notice and am looking at the options...... currently i think its 6.7 or something like that..... if i do nothing it will go onto the floating rate automatically.... just going to look at the web page of the bank i use to see what current floating is... :) beetle	beetle (243)
1207875	2011-06-08 23:10:00	The RBNZ is a government-owned institution for monetary policy, essentially. Commercial banks can deposit with and borrow from the RBNZ, and as such the RBNZ's interest rate has a heavy impact on mortgage rates, as it affects the rate at which banks can obtain funding. The RBNZ keeping the official interest rate low, means mortgage interest rates remain low. As the RBNZ raises the interest rate, it costs the commercial banks more if they need to borrow money, so mortgage rates increase accordingly. I would expect most lenders to have their mortgage rates somewhere between 5.5% and 6.5% at the moment. There's really far too much in it to go in-depth in just a thread reply here.	inphinity (7274)
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