Fixed mortgage flight continues
Kiwi borrowers are continuing to move towards fixed home loans, latest figures from the Reserve Bank show.
In June, fixed mortgages made up 39.9% of the market with a total value of $69 billion.
That is 5% higher than in May, when the trend started to shift away from floating mortgages.
The value of floating mortgages continued to decline, comprising 60% of the market with a value of $104 billion, a 2.4% drop compared to May.
The total value of residential mortgages in June was $173.8 billion, up from $173.2 billion in February and $169 billion in June 2011.
The monthly weighted average interest rate on floating mortgages was 5.68%, and 6.17% for fixed.
For borrowers on fixed mortgages, terms of one or two years were the most popular, although there is an increasing trend towards longer terms.
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Comments and questions2
The reason I am considering leaving my floating BNZ mortgage, is that despite fluctuations in the cash rate since we went floating 18 months ago, our rate (5.74%) has never changed as far as I can recall. When I signed up for this I imagined it would change frequently. With so many fundamental changes over that time I would expect this rate to change all the time however when that doesn't happen you wonder just how much fat is/was in there.
Has anyone else had a floating rate over that time with a different bank that is truly floating?
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Thanks to the Internet we now know this fact. if you don't known this then your either a retarded child or an educated fool.
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Examples:
1: Libor scandal (leaked information about rigging the interest rates)
2: Facebook losing 60% of mum & dads investments.
People need to wake the f up!
Dumb ass kiwis!