Comments on: Staying short the best strategy http://www.mortgagerates.co.nz/blog/11/ Find the best mortgage rates online Thu, 10 Sep 2009 22:17:14 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Blog: The Landlord says… » Blog Archive » Where to for home loan rates? http://www.mortgagerates.co.nz/blog/11/comment-page-1/#comment-6 Blog: The Landlord says… » Blog Archive » Where to for home loan rates? Fri, 19 Jun 2009 04:37:54 +0000 http://www.mortgagerates.co.nz/blog/?p=11#comment-6 [...] many comments to the previous Blog suggested going long makes the most sense at the moment. A couple things to consider are that [...] [...] many comments to the previous Blog suggested going long makes the most sense at the moment. A couple things to consider are that [...]

]]> By: Steve Blakeley http://www.mortgagerates.co.nz/blog/11/comment-page-1/#comment-4 Steve Blakeley Fri, 12 Jun 2009 02:35:07 +0000 http://www.mortgagerates.co.nz/blog/?p=11#comment-4 I agree, it appears a no brainer at present. Who would fix for 5Yrs when the premium over the 6mth and 1Yr rate is almost 2.50% ... on a $300,000 mortgage that is a cost of $144.00 per week. Just TOO much. Better to just keep rolling 6mth fixes at present or perhaps split 50/50 between 6mth and 1Yr. If you get spooked by the signs that the economic recovery is gathering steam then you can break and go longer then. The break fee will be negligible ( probably only admin fee ) as the rate you will be breaking will be lower than the current rate. Disclosure: I just fixed $432,000 on 1Yr at SBS at 5.60% and another $205,000 on 6mth at ANZ a 5.45% against 3 rentals. PS. Floating seems pointless too ... again an almost 1% premium over 6mth rates, makes no sense. I agree, it appears a no brainer at present. Who would fix for 5Yrs when the premium over the 6mth and 1Yr rate is almost 2.50% … on a $300,000 mortgage that is a cost of $144.00 per week. Just TOO much. Better to just keep rolling 6mth fixes at present or perhaps split 50/50 between 6mth and 1Yr. If you get spooked by the signs that the economic recovery is gathering steam then you can break and go longer then. The break fee will be negligible ( probably only admin fee ) as the rate you will be breaking will be lower than the current rate.
Disclosure: I just fixed $432,000 on 1Yr at SBS at 5.60% and another $205,000 on 6mth at ANZ a 5.45% against 3 rentals.

PS. Floating seems pointless too … again an almost 1% premium over 6mth rates, makes no sense.

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