Swap rates have been volatile which meant a roller coaster ride for those fixing during the Christmas period. We saw bank rates move up just before Christmas which spelled a rush to fix before the new year. However lately these increases have been reversed due mainly to a much bleaker outlook on the stock markets in US, China, Japan and Australia.
Currently we are sitting with swap rates at a similar level prior to Christmas.
Here are some answers to some common questions we encounter.
Can you fix a rate for an existing mortgage I have?
Yes.
How many banks do you haggle the rates with?
At times we may talk to as many as four banks regarding a client however most often this is not the case.
As we are working on multiple clients with multiple banks at any given time we have a fairly good idea of the best possible pricing we can obtain.
How long will the lender hold my rates?
Generally, most of our banks can hold a rate for around 60 days. Some can extend this a bit further.
My loan rate is expiring, when should you haggle rates?
Most banks will allow you to get a new rate held 30 days prior to the expiry, some banks allow you to do this 60 days prior
Will my bank match the best rate on the market?
Generally, yes most banks are keen to keep your business and will generally try their best to match what another bank is offering. On the odd occasion there is a rate which is so sharp that they need proof of the offer.
This article has been written by Hamish Patel, mortgage broker with mortgagesonline.co.nz. Ph: 09 625 4693, Mobile: 021 625 693, hamish@monline.co.nz
