I cannot understand why house mortgage interest rates can't be fixed at 5% permanently. Housing does not contribute to export earnings so why can't the cost of funding housing be stabilized? The sudden increase in repayments for house loans just harms us all and makes a recession. The children don't get fed properly and the stresses cause so much social harm. The cost of this lasts for lifetimes.
Exactly!. the big problem with the use of capital in the NZ economy is that it is focused in the wrong areas - ie, housing, rather than productive assets.
If you made the longer term fixed rates more attractive you might see more pickup, locking in long term at the moment only makes sense for the bank when your paying over the odds for years.
There is a high dairy payout this season. Some are cynical enough to say this will result in 20% farm cost inflation that will be felt across all the ag sectors as the hands go in the till. If NZs biggest industrial sector locks down in response it will be a long term reaction across all of rural NZ.
If the Bank borrows the money to lend to you the customer, why would the interest rate fluctuate once the borrowing transaction has been completed?, you could fix that rate for the term of the loan.
Why can’t I borrow money from the reserve bank?, I mean banks are just middle men that manage the transaction and clip the ticket, then package your mortgage with 10 others and on sell it on the debt market.
Contact Mike: blog.bnz.co.nz/author/mike-jones
I cannot understand why house mortgage interest rates can't be fixed at 5% permanently. Housing does not contribute to export earnings so why can't the cost of funding housing be stabilized? The sudden increase in repayments for house loans just harms us all and makes a recession. The children don't get fed properly and the stresses cause so much social harm. The cost of this lasts for lifetimes.
That's the point, banks are not for people, they are for profit!
Exactly!. the big problem with the use of capital in the NZ economy is that it is focused in the wrong areas - ie, housing, rather than productive assets.
I got wiped out in mid 80's with 23% !!!
So please - think yourself lucky at todays rates
NZs big export is food. But as usual NZ food is cheaper in another country???
If you made the longer term fixed rates more attractive you might see more pickup, locking in long term at the moment only makes sense for the bank when your paying over the odds for years.
Appreciate for the good content
Thank you for your support!
imports are down .. exports are down , economic activities down .. why reserve bank and govt not the people of the country..
There is a high dairy payout this season. Some are cynical enough to say this will result in 20% farm cost inflation that will be felt across all the ag sectors as the hands go in the till. If NZs biggest industrial sector locks down in response it will be a long term reaction across all of rural NZ.
..indeed, really farm values ought, by law, to be set at a proportion of average productive value over, say, a 10-year period.
go to the bank and borrow 100k for sharemarket ..couldn't get the loan , ohh well what is left to invest 🤔
I wouldn't bank on lower longer term rates. Nz is exposed to international financial uncertainty. Disregard banker hype.
It's a house of cards.
We're moving into unknown territory . 6:47
If the Bank borrows the money to lend to you the customer, why would the interest rate fluctuate once the borrowing transaction has been completed?, you could fix that rate for the term of the loan.
Why can’t I borrow money from the reserve bank?, I mean banks are just middle men that manage the transaction and clip the ticket, then package your mortgage with 10 others and on sell it on the debt market.