Now even our MP’s want to know why the banks are ripping us off.
Filed under: Banks, General Budgeting, Interest Rates, Credit Cards & Mortgages in NZ, Property & General Investing
Despite a 2.5% cash rate, and Standard and Poor’s not downgrading the country’s economic status, the New Zealand banks are still on a rort, ripping us off with now 8% interest rates on 5 year fixed terms. I don’t know how they sleep at night – I really don’t.
According to an article on Stuff, the MP’s in a cross part committee (well – we are bound to see some action there then) have expressed their concern over the lack of action from the banks. Especially since they now have a guarentee on deposits from the government. Heres a thought – take the guarentee off them till they learn to behave! Especially since its us taxpayers that are covering it while they beat the crap out of our budgets!.
Today, Bill English, the finance minister has said that we, the consumers, should make our displeasure known by taking our business elsewhere. What elsewhere??? They are all as bad – all charging way too much, and if you try and move, you will have to prove the (now lower) value on your house and have a bigger deposit. And you will probably get screwed on break fees. So nice thought – just not very practical right now. Trust me – If I could change banks – I would!
At the moment the only way to beat the banks greed is to pay off any mortgage as fast as humanly possible. I’m just coming to the end of my fixed terms with ASB ( they hold 2 personal and two business mortgages of mine). I’m not fixing the personal ones – because I don’t intend to have them much longer than a year from now. I’ve fixed one of the business ones for two years. I would have fixed for 5 – but as they are being ridiculously stupid by putting up their 5 year rate – they can frankly go to hell!
When we stared buying investment properties, our intention was to never pay off the mortgages on them (the ASB business mortgage is secured against the family home – so we always intended to pay that one off) – but the way they are behaving – I think I’m changing my mind on this stance.
If you are thinking of moving to New Zealand (and there are many reasons to do so) please be aware of just how much you are going to get hammered for if you need a mortgage. And bear in mind that these banks are still expecting 20% deposits of you – so they are not only overcharging, but they are not exactly taking a risk on lending either. You are now looking at between 6 and 8% interest on your mortgage in New Zealand.
Anyway – as far as the personal mortgage goes – I had always intended to pay it off in 10 years. Looks like I’ll be doing it in 5years – which means by the end of 10 years I should be able to get rid of the two business mortgages at ASB as well. That will be a good day.
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Related posts:
- How to beat the banks?
- Beating the banks with the Mortgage.
- New Zealand Banks and the Economic Crisis.
Comments
One Comment on Now even our MP’s want to know why the banks are ripping us off.
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Hubby on
Fri, 12th Jun 2009 1:48 pm
I’m wondering where all the money stored as deposits has gone?
With NZ banks apparently seeing a ‘huge surge’ in deposits because no one trusts 2nd tier finance companies now, where is all this surplus cash going?
Lots of domestic savings, and yet the banks are still borrowing on the international market – which is apparently expensive because all the other banks are being unfair and only looking out for themselves.
How selfish of those foreign banks not to be lending money at a decent interest rate!?
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