Ringing in the rate changes
Friday, November 25th 2016, 10:00AM 
5 Comments
We have increases to fixed rates across the board today from BNZ, ASB, Bank Direct and Sovereign. When you look at the rates table here there's a lot of red ink.
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On 29 November 2016 at 12:01 pm gavin austin adviser business compliance said:
Hi DT - good comments- yes we have become very apathetic towards mortgage rates due to the relative pow interest rates compared to a few years ago. Banks do need to justify their positions but don't hold your breath for a response to your comments as they just won't bother- another sign of their arrogance. The Bankers Assoc probably wont respond either as they are just a collective of the BIG four and we all know that the NZBA CEO is just their puppet mouthpiece.
On 30 November 2016 at 7:51 am Keith Walter said:
When the interest rate the banks borrow at increases (as it has) the mortgage rates rise On 30 November 2016 at 2:08 pm gavin austin adviser business compliance said:
Great insight Keith - where specifically did this increase come from? I thought we had pretty high internal costs of borrowing compared to world markets. If we (the Banks) are going offshore for funding it should(excluding currency risk) be cheaper after all we do have a "Super Turbo Charged Growth Economy" a very stable political climate so all seems to be in our favour. Any additional info that you have to enlighten readers of Good Returns would be great. On 30 November 2016 at 2:24 pm DT said:
So the next question is- can anybody tell me how much the rate the banks borrow overseas money at has increased? If it increased by .25% in August and again by .25% in November, borrowers could understand by OCR cuts haven't been passed on. A general statement that 'overseas borrowing interest rates have increased, therefore we can't pass on OCR cuts', does nothing to assure borrowers that the banks aren't just skimming off a bit of free cream for themselves
If the banks have nothing to hide, why is there no response to my comments, or is this just another sign of their arrogance?
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1. We have chosen to ignore the recent cut to the OCR, and use the profits to pay our executives higher salaries
2.Banking is about business and is nothing about having a social conscience or morals, and if we can screw some more money out of ignorant borrowers, we will continue to do so
3. There is nothing to stop us, we will raise rates whenever we feel like it, the government would never intervene
4.Usury is legal in New Zealand
5. We can always take advantage of the general apathy and ignorance of borrowers, after all there is only one comment from all our thousands of borrowers in this column