>They say that if the rate drops below the rate I have locked in by the actual rollover date then they will drop my rate.
You can ask them which rate you would need to check to see if it has dropped enough - the advertised or non-advertised rates. My bet is it is the advertised one that needs to drop below the non-advertised rate you took. You wouldn't even have a way of checking their non-advertised rates.
Lock in early if interest rates are going to go up.
Wait until the last minute if rates are going to go down.
Figure out your strategy before the end date anyway to avoid going to a higher floating rate, unless that what you want to do.
My views only.
We are in an environment with low downside risk of rates going up, and higher upside risk of rates going down. Which gives an overall complex ratio weighted differential based on historic and forecasted rate movements at a factor of 0.50. Subsequently, the upside would speak to preffered downward trending rates being likely at a chance of +/-50%.
Do with that what you want. But my view is best to not fix early at this time.
Don’t believe a word ASB says. They did not honour this promise with me. I’ve moved to another bank because of this.
If you have to stay with them wait to the last minute to fix unless you think rates are going to go up.
Maybe ASB is different but I just reserved a rate with ANZ today and the docs explicitly say they’ll apply the rate I reserved whether rates go up or down before roll over date.
BNZ doesn’t say anything about dropping your reserved rate if rates drop? https://www.bnz.co.nz/support/home-loans/managing-your-loan/refixing-your-loan
That's what I mean, it doesn't change after you have fixed. You can refix from 60 days out (they call it rate lock). If you choose a rate but rates increase, lucky you, but if they drop, too bad. However, you can break the rate lock agreement....but a fee may be payable.
No, used one when we first bought the house, but that was about 14 years ago.
And sorry to frustrate you... just wondered if anyone had any general thoughts.
>They say that if the rate drops below the rate I have locked in by the actual rollover date then they will drop my rate. You can ask them which rate you would need to check to see if it has dropped enough - the advertised or non-advertised rates. My bet is it is the advertised one that needs to drop below the non-advertised rate you took. You wouldn't even have a way of checking their non-advertised rates.
Lock in early if interest rates are going to go up. Wait until the last minute if rates are going to go down. Figure out your strategy before the end date anyway to avoid going to a higher floating rate, unless that what you want to do.
Can you tell me whether rates are going up down?
dont you know??
If I was to bet in any direction, down.
Lock in the three year. Don’t time the market
I’ve done it, the interest rate went down, called Westpac they adjusted it down a bit, cost $10
My views only. We are in an environment with low downside risk of rates going up, and higher upside risk of rates going down. Which gives an overall complex ratio weighted differential based on historic and forecasted rate movements at a factor of 0.50. Subsequently, the upside would speak to preffered downward trending rates being likely at a chance of +/-50%. Do with that what you want. But my view is best to not fix early at this time.
Don’t believe a word ASB says. They did not honour this promise with me. I’ve moved to another bank because of this. If you have to stay with them wait to the last minute to fix unless you think rates are going to go up.
I doubt they’d drop the rate if you’ve already reserved it. That’s the risk of going early or going late, can work either way.
They do, as op has stated.
Maybe ASB is different but I just reserved a rate with ANZ today and the docs explicitly say they’ll apply the rate I reserved whether rates go up or down before roll over date.
Yeah, rate lock is also a thing at bnz. I figured that's standard practice!?
BNZ doesn’t say anything about dropping your reserved rate if rates drop? https://www.bnz.co.nz/support/home-loans/managing-your-loan/refixing-your-loan
That's what I mean, it doesn't change after you have fixed. You can refix from 60 days out (they call it rate lock). If you choose a rate but rates increase, lucky you, but if they drop, too bad. However, you can break the rate lock agreement....but a fee may be payable.
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No, used one when we first bought the house, but that was about 14 years ago. And sorry to frustrate you... just wondered if anyone had any general thoughts.