THURSDAY, SEPTEMBER 10, 2015 I THE DOMINIONPOST I dompost.co.nz B4 NZX 50 NZ$/US$ NZ$/A$ 90 DAY BILLS OIL 5671.42 63.42 90.39 2.67 49.25 Time to fix your loan, but for how long? SUSAN EDMUNDS said while special rates such BNZ Six months was a happy me- fall. ‘‘There is more chance of reductions.’’ rate for 4.39 per cent. We haven’t and ASB’s 4.35 per cent grabbed dium, he said – short enough to be rates going up than keep coming Her colleague, David Tripe, seen the bottom yet, in my MORTGAGE interest rates are headlines, they would not suit able to take advantage of other down. They can’t keep coming said that five-year rates looked opinion.’’ falling as banks compete for their many borrowers. specials as they came up but not down, how low can we go?’’ almost as low as they would go. Patten said banks had the mar- slice of the home loan market. The one-year term was an un- so long that a borrower risked He said it was possible short- The lowest in the market at the gin to cut rates. ‘‘It’s just whether Another flurry of rate-cutting is comfortable fit for some. coming off the fixed term after term fixed rates would get below 4 moment is 5.09 per cent, from they have the desire. It only takes likely if the official cash rate ‘‘I recommend sticking to six rates had already started rising per cent by the end of the year as ASB. one to get into a competition and (OCR) is cut, as widely predicted, months fixed. That gives you the again. some predicted. Tripe said the Reserve Bank’s everyone starts. I see five-year yesterday. ability to see through the next Patten said two- or three-year ‘‘But at the end of the day if you forecast suggested the current rates getting under 5 per cent. Depending on which rate you three OCR announcements. One rates were another option if are going to wait on floating and downturn in export prices would That’s what I’d be watching for.’’ take, the repayments on a $500,000 year is a long time in finance, a lot borrowers were happy with them. then fix, the gains are negligible.’’ be temporary and they would pick But Matthews cautioned mortgage can be anything from can happen in that period. If you Rates range from 4.65 at Claire Matthews, a banking ex- up again next year. against trying to time the market. $3122 at the cheapest rate in the fix for six months, within four you Kiwibank to 5.25 per cent at ANZ pert at Massey University, said ‘‘That would mean the five-year ‘‘Borrowers should be thinking market of 4.35 per cent fixed for are in the timeframe where you for two years. The cheapest three- further reductions in the official rate may be as low as it is going to about the implications of their de- one year, to $3727, if you stay float- are able to refix if there is a turn- year rate at the major banks is 4.79 cash rate were likely over the rest get.’’ But Patten cautioned against cision to fix in terms of how their ing at the most expensive main around, which could easily hap- per cent at ASB. of this year. fixing for the longest terms unless loan will then operate.’’ bank rate of 6.5 per cent. pen.’’ David Hart, a mortgage broker ‘‘There’s the question of how certainty was very important for a But with rates at record lows, is He said floating rates, of be- and former head of Loan Market, long interest rates will stay down borrower’s budget. Claire Matthews, a banking expert at now the time to fix, or is there tween 5.99 per cent and 6.5 per said it seemed sensible to fix. before they increase again. Fixed ‘‘If we’re going to end up in a Massey University, says further further for them to fall? cent at the major banks, were too But he did not share Patten’s rates currently are looking good, position similar to Australia, in reductions in the official cash rate are Mortgage broker Bruce Patten expensive to justify not fixing. certainty that rates had further to but there could still be further Australia you can get a five-year likely over the rest of this year. BUSINESS BRIEFS Economic Bus driver wrongly fired A Dunedin bus driver sacked for benefits to letting his wife ride for free has won a $10,000 payout from his former employer. Kevin Hellyer, a bus driver with Go Bus Transport, was dismissed in August 2014 but won compassion his case at the Employment Relations Authority (ERA). Go Bus Transport was ordered to pay $4676 for lost wages, $374 for RICHARD MEADOWS holiday pay, $140 for KiwiSaver contributions, $4800 in ECONOMISTS say the long term compensation, plus interest and benefits of taking in refugees need costs associated with his case. to become as much a part of the debate as the upfront costs. The Government has bowed to Bubble coming public pressure, agreeing to re- Auckland is heading for a housing settle 750 people fleeing war in bubble from falling interest rates Syria over the next 21⁄2 years. and rising hopes of housing However, National has already intensification, the city’s chief said it will block legislation to ex- economist Chris Parker warns. As pand the quota beyond the one-off of July, Auckland house prices had intake. risen 20 per cent in the past year to Prime Minister John Key $735,000. claims each refugee costs more Shamubeel Eaqub than $80,000 in health, housing, education, immigration and social ‘‘The thing we need to bear in Shoppers at one of the Xiamen Seashine Group’s supermarkets visit the dedicated New Zealand product section. Hi-tech Kashin development. mind is [refugees] are coming out ASB’s Kashin piggy bank has been But economist Shamubeel of a trauma situation, and so given a digital makeover. The Eaqub said the benefits side of the they’re different to any other elephant-shaped moneybox, which equation was missing. migrants.’’ Chinese supermarket opens NZ section first appeared in 1964, will no ‘‘The money spent is seen Spoonley said refugees were longer rattle with carefully hoarded purely as a cost, and not as an still likely to make a net positive loose change. It will however let investment.’’ contribution, but over a longer COLLETTE DEVLIN invited Seashine bosses to visit its loose a trumpet each time its owner That contrasted with other timeframe to adjust for resettle- IN CHINA vineyard in May and only a few uses it, displaying the bank account areas of Government spending, ment. FROM WELLINGTON WITH LOVE months later the New Zealand balance on a screen on its such as sport, where the benefits He pointed to Jewish refugees A MAJOR Chinese supermarket A powerful group of civic and business leaders are in China in a bid to wine was being sold in the Sea- stomach.The new box, called were trumpeted. arriving during World War II and chain, which can fast track attract investment into the capital and beyond. The 70-strong delegation shine store. ‘Clever Kash’, lets parents swipe ‘‘We’ve got to be consistent. If Vietnamese fleeing the Vietnam importing, is on the hunt for more attending the inaugural New Zealand-China Mayoral Forum includes 12 Hastings Mayor and Local Gov- virtual notes and coins across from the Rugby World Cup is worth so War as examples of strong and in- Kiwi products to fill its shelves. mayors from across New Zealand. Also in China are some of Wellington’s ernment New Zealand president the ASB mobile banking app. many billions of dollars to the dustrious communities. On Tuesday the Xiamen Sea- key business figures, including Wellington Company head Ian Cassels, Lawrence Yule said the importing economy, I bet refugees are worth Spoonley said the most signifi- shine Group opened its first New Willis Bond director David McGuinness, Port Nicholson Block chief process usually took more than a a lot more.’’ cant consideration was the hu- Zealand products section, selling executive Jason Fox and Morrison & Co chairman Rob Morrison. year but because of the special Tourism key Eaqub said the international manitarian argument. 189 Kiwi items. Projects under discussion include extending the Wellington Airport, the economic zone consideration, it Nelson needs to focus on its evidence was that refugees’ net ‘‘As a wealthy, advanced Seashine vice general manager building of a convention centre and redevelopment of Shelly Bay with took less time. strongest assets, including tourism, economic impact could be posi- country, we should be playing the Xie Yin said New Zealand Chinese investors. ‘‘Seashine came to Wellington to strengthen its economy, says tive, but only with good resettle- role of good citizens.’’ products were highly valued and in May and Wellington reached ANZ chief economist Cameron ment processes. Refugee advocate Murdoch Ste- there was room for many more. out to the rest of New Zealand to Bagrie. The economist also ‘‘It’s not that we’re doing a bad phens, lead researcher for Doing The opening of the New Zea- expand trade cooperation with processing, fresh food and grain supply it with high quality, safe suggested the amalgamation of the job. The big question is whether Our Bit, said almost half of new land section was attended by civic more New Zealand companies to and refrigeration.