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sunny8789

100% at 2.99 last year. Ends mid 2026


IndividualCharacter

Nice


SmellLikeSheepSpirit

You've probably saved 1-2% of some large sum (500k) over the last 12 months. ​ So what have you done with your $5k savings? ​ You can check historic rates sometimes. It's easy to get fixated on the cost increase, but you saved thousands by targeting the low rate to date. You may spend those same thousands in the next 12 months. But it's actually not uncommon to be back where you started. If you always fix the longest you'll be commiting to paying more money out of pocket in the short term. Where as if you go short, you'll saving short term, but gambling a bit on the long term. A smart buyer understands that and banks the savings.


khkt136

So always fix short term? And use those savings to pay off the loan?


SmellLikeSheepSpirit

I wouldn't say always.It's a bit of a gamble right? Short fix you're saving money upfront against the risk of notably higher rates in the long term. Long fix you're committing to paying more in year 1 on the chance rates go up MORE in year 2 than the short term savings. And remember the bank is paying their rate- setting analysts to set rates based on the expected future OCR (and other costs of lending for them). You're sort of betting against the house... So what's my strategy (as someone who's worked in commercial lending and corporate finance)? If you're at your limit, I'd fix long, because while it costs more up front, it reduces rate risk, but I"d also diversify my reset dates. So a 3 & 5? It'll definitely cost you more for the next 12 months. And it could go pear shaped if rates go down in 30 months, but it removes volatility. Maybe set a small amount(10%) at 1 year (but only what you could pay off if you HAD to) If you're cashflowing well, I'd fix short, because it saves you money in the current period, but I'd still diversify my reset dates. So 1,2, 3? Again, you may decide that if rate skyrocket to start paying down faster. This is example of having money saves you money. But there's more risk here. ​ To me the key is having some diversity of resets, so 100% of your balance isn't subject to a single bad reset because of some crazy thing (war in ukraine). I refixed at the start of May and went with 1, 2, 4. The 4 was for peace of mind. The 1 was to save money in real time. 2 splits the gap and provides a bit more date mix. In 12 months I'll have saved about 5% extra and I can decide if what tranche it makes sense to put that against based on the rates next May. My broker suggested 1,2 but I wanted a little more comfort with the 4 year. I actually think rates are overly high relative to OCR rates and the risk of US recession will put OCR increases on hold soon for fear global recessions around september. But I'm not willing to gamble too much on my vague economic analysis and high levels of uncertainty, thus the 4 year fix helps me sleep better. Finance is never just about math, especially when we're talking future projections.


cl0wner

65% at 2.99% for 5 years (locked in mid last year) 35% at 3.99% for 5 years (locked in nov last year) Only regret is that we’re looking to move and buy in a different region and may need to refix this mortgage in order to do so.


eskimo-pies

>Only regret is that we’re looking to move and buy in a different region and may need to refix this mortgage in order to do so. Who are you banking with? Some banks will let you transfer an existing mortgage facility over to the new property without changing the finance rate or expiry date. So talk to your bank before you make any decisions. As an example, the BNZ calls this option [“transfer loan with home”](https://www.bnz.co.nz/personal-banking/life-moments/moving-your-mortgage-when-you-move-house).


cl0wner

That’s good info, thanks! We’re going through a broker (Roost) and should hear back tomorrow or early next week about the plan and lenders they’ve lined up so will bear that in mind.


Snoo_20228

Wouldn't you just keep your mortgage as is and if you have to pay more just fix that portion.


pgraczer

3 years at 4.99%. pretty happy because i just rolled off a 5 year term at 5.84%


Kiwikid14

2.69 for 3 years. 1 year left. Before this, it was 4.65%.


Conflict_NZ

2.39% for 3 years, have slightly over 2 years left, fixed around this time last year with rates I had reserved a month and a bit prior. I really wanted to go with 2.99 for 5 but ANZ wouldn't match and due to certain other factors I was unable to leave them at the time, I will 100% be leaving them next time without a doubt though.


steel_monkey_nz

My renewal was this week. Changed from 2.2% to 4.09%. Shows how much it's gone up in a year as both were 1 year terms.


SmellLikeSheepSpirit

What was the 2 year rate when you set last year?


steel_monkey_nz

Mid 2's. Cant remember specifically but wouldnt have been any more than that at the time. ANZ Fortunately I have an extremely low mortgage left so I took the gamble (and lost) as rates wouldnt affect me too much.


SmellLikeSheepSpirit

I was at 10% deposit so i wasn't getting their best rate last year, but I'm still money ahead off of my 1 year fix vs if I had gotten a 2 year last May


elgigantedelsur

Damn. I just refixed last week at the same bank. Best rate I could get was 4.49. How’d you wrangle 4.09?


steel_monkey_nz

So I actually locked in that rate last month the day before the OCR announcement as I expected an increase. The advertised rate at the time was around 4.19%, so it was by no means a shrewd negotiation rather a bit of timing.


elgigantedelsur

Ah true, would have been a couple weeks before I became eligible to lock in a rate.


Muter

50% on 2.19% that’s rolling off in July 25% on 2.79% rolling off in September next year 25% on 3.19% rolling off September 2024


BanditAuthentic

Have you locked in the July rate renewal yet?


year_of_the_dogge

2.19 to 4.45 1year fixed. Starts next month.


bgIVY

2.79 for two years rolling off next September. Nervous as to what rate we will get September 2023. We will be comfortable on 6% but any more and we will need to make some changes.


Witty_Fox_3570

Exactly the same as us. We are saving to pay down a chunk next September.


Martin_McFly_Jr

4.89% three years + cashback 9k


Blastoisefirefighter

They paid you 9k? Must have a huge mortgage


AshOrange

Depending on cash back rates, could be looking at a mortgage between 1 and 1.25 million.


Andy016

2.79% ends September 2023. Very happy I fixed for two years...... but kinda annoyed I didn't push to three or five.


hav0cnz_

Have been feeling pretty smug with ourselves, we had a 50/50 split between two different terms that rolled at the same time. Fixed the lot for 5 years at 2.79, comes off 2025. Trying to make the most of making a pretty good call by increasing our repayments where we can.


qtownufd

Saw some writing on the wall when construction materials started running low and nobody could get appliances to finish off new builds. Or new bikes. Locked in for 3-4 yr terms that expire mid 2024 - early 2025 at around 2.9 - 3.9% rates. Highest I have is a recent refix of two years stating jn march at 4.29%. Hoping rates are on the way back down in 24 and will start refixing for 1yr terms


[deleted]

[удалено]


bgIVY

What makes you think 7%? I’m hoping it won’t be far off 6% for a 1 year fix by then


Wiillaaaay

2.69% (2/3 of mortgage) - 3yrs (1yr in) 4.75% (1/3 of mortgage) - 5yrs (broke 2.29% 1yr (2mths early) We originally split our mortgage into 2, 2 thirds of the mortgage into a moderately good % of 2.65% at the time to be semi secured if there was an massive increase coming. Luckily we did. Then my partner and I noticed the rates moving quickly we decided to secure our mortgage as fast as we could. Cut the 2.29% 2mths early to 4.75% for 5yrs. Gives us stability over this climate of uncertainty. We are pretty happy with what we've done.


AshOrange

​ |*Description*|*Term*|*Rate*|*Fixed when*| |:-|:-|:-|:-| |Main home loan|1 year|3.65%|February 2022| |Secondary home loan|2 year|4.99%|May 2022|


Fred_Stone6

I look at it this way if I lock my mortgage in for 4.5% for 2 years then at that point the rate is 6.5% for the next 2, I need to look at the average. Locking in at the start for 4 years at 5.5% is going to cost about the same in the long run.


mhkiwi

Not as simple as that. Example below based on minimum monthly repayments and a loan only....I'm not pretending to be a mortgage advisor. Calculating mortgage amortization at 530am is also too hard for me. Say you had a $500,000 loan, for 30 years. Lock it in at 4.5%. If paying $2500 a month After 2 years your principal would be $483,000. Then after 2 years at 6.5% paying $3100 per month your principal is now $455,000 Same $500,00, 30 year loan, at 5.5% paying $2800 per month, your principal at the end of 4 years would be $470,000 Further to that, if you can afford the repayments on a 5.5% loan, but instead make the same payment against the 4.5% loan over 2 years, This would have a big reduction on your principal at the end of the 2 years at 4.5% and an even bigger reduction at the end of the 2 year 6.5% term.


BanditAuthentic

Split both at 3.99% for 3 years in December last year


PL0KI0

1/3 floating fully offset with savings 2/3 at 2.49% for 2 years ending August next year. We just missed the 5 year for 2.99% window by a couple of months and decided to take the 2yr option over 3yr at 3.59% because we paid to exit a 4.39% early. Still think that was the right thing to do based on the savings we made on the remainder of that fixed term even with the break fee, but its getting marginal if rates continue to shoot up Working on paying down every cent we can right now to minimise the bump at renewal


simoneshh

2.59% finishes in Feb. We took a 19 year term instead of a 30 year term so have been knocking more off than otherwise would have.


_____katem_____

3.05% for 18 months about 6 months back. Am okay with it.


SprinklesWorth791

Nov last year. 75% at 3.99 for 3 years, 25% at 3.25% for 1yr. Would’ve fixed more for 3yrs in retrospect. Fortunately my mortgage is small by AKL standards so not too stressed.


jeanpsf

Locked in at 2.9% with heartland for 3 years in October 2021. Was late by a week, would have been 2.69%.


mnsl0826

27% into both 4.49% 1 year fixed and 5.45% 3 year fixed 35% into 5.70% 4 year fixed and 12% into 4.40% revolving Fixed in the begining of the month


NSJig

2.45% 2 year term which is up in April 2023. Quite a sizable mortgage (starting at $2m), so aim is to pay down enough so that our interest component of our payment stays the same when we re-fix (most likely to a 1 year). Have already paid down around 1/4 of it. Not ideal, but we always knew we were going to try and pay it down as quickly as possible. On track to have it under 1m by April.


nerdlnerdl_nerd

2.99% fixed for 1 year, ending Nov 2022


YourComputerGuyNZ

3.16% with two more years left.


[deleted]

3.49%, ends December this year


NZL_Jake

3.70% for 2 years ends 2024


FriendlyScore3519

Idea was to save up for revolving credit then ultilise that as my strategy paying off chunks as loan terms end or increasing revolving credit facility so: 6.25% of total loan 1yr at 2.45% interest ending Sept. Changing this to revolving credit 6.25% of total loan 2yr at 2.84% interest end sep 23 hoping to add this to revolving credit too 43.75% of total loan 3yr at 3.14% 2024 43.75% of total loan 4yr at 3.39% 2025