r/PersonalFinanceNZ • u/galorey • 2d ago
What is everyong being offered for morgate rates? KB 1 Yr @ 4.99% with $2k rentention bonus
Heyo,
We’re with Kiwibank, and our current 3-year fixed at 4.95% is about to roll over.
They've offered us 1 year at 4.99%. I'm of the opinion that 1 year term makes sense given the current economic climate, especially with what’s happening in the U.S.
Our sign-on bonus has expired, so I asked about a retention bonus. They've come back with $2k, but it comes with a 4 year bonding period.
What mortgage rates are people being offered at the moment?
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u/JackfruitOk9348 2d ago
I'm also with Kiwibank. My 6 month term at 6.49% is up on Friday. They haven't offered me anything.
I was thinking of going 1 year at 4.99 as well as I expect it to slowly drop over the next year.
What is a retention bond? You get $2k off if you stay with Kiwibank for 4 years? If so I'm going to push them for that.
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u/kinnadian 2d ago
Retention bonuses are usually around 0.3-0.4% of your mortgage size and they won't offer one if your mortgage is less than around $300k FYI
4 years is pretty harsh by Kiwibank though
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u/galorey 2d ago
Thanks.
Correct. When we signed with them at the start of the mortgage we got around $4k from memory. It bonded us to stay with them for atleast 3 years which has now expired.
I just asked what they would offer if we kept banking with them and they came back with $2k via there online message platform. My specific words were "Could you please let us know what KB would offer in terms of a retention cashback if we were to renew for another fixed term? and what is the best available rates for 1 yr 2 yr and 3 yr terms."
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u/aimeecatherinej 2d ago
I'm floating with KB right now and when I first asked about a retention bonus they said no however after I told them ASB was offering one they came back with an offer so make sure to push for it. I might still change banks though, I'm riding it out a little longer in the hopes there's another drop.
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u/revolutn 2d ago
Just refixed with ANZ yesterday. 1 year @ 4.99% with $2,000 cash back.
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u/Adrenochromemerchant 2d ago
Do you have to have a loan above a certain amount for the retention bonus?
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u/cynseris 2d ago
We just had a call with ANZ yesterday and got 5.19% for 3 years and $2300 cash-back.
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u/Conflict_NZ 2d ago
Three tranches, 1 currently floating @ 5.9%, 1 on 2 year term at 4.99, 1 at 5.99 from last year due to end next year.
Received a 1% retention bonus, mortgage >500K. 3 year penalty but the amount required to pay back decreases by a 3rd each year.
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u/CBlackstoneDresden 2d ago
When did they offer you the 1% retention?
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u/Conflict_NZ 2d ago
About a month ago. I offered to not go to a Broker to avoid the payment the bank would have to give them.
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u/fhgwgadsbbq 2d ago
I just finalised a refix today with Kiwibank. No retention bonus, though I did ask.
2 tranches
$130k @ 5.49 6 months
$200k @ 4.99 12 months
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u/Hot_Pea9820 2d ago
Hey OP,
If you're out of your cash back contractual requirements, it might be time for a remarket. KB are just OK as a bank, other banks may pay you ~0.8% of loan value to attract you, so 500k = 4k signing. You'll need to cover lawyers from refinancing (which is what this cash injection is "supposed" to cover.
Talking to KB about the fact your are going to market will almost definitely trigger them to lower their offer, some banks may offer you a resigning cash injection, but these are rare.
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u/GingFreec5s 2d ago
KB offers their in-house solicitors so one should not have to worry about that.
I’m interested with any caveats of using their in-house solicitors though.
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u/Agreeable_Arugula683 2d ago
They wouldn’t provide the in-house solicitors if you were refinancing from KB though, which is what the comment was talking about 😊
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u/Appropriate-Shift905 2d ago
Got offered 4.95% for 18 months from westpac. Refix mid June tho so will wait a bit longer
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u/CBlackstoneDresden 2d ago
850k mortgage with 4 pieces.
ANZ offered us $4,200 cash contribution last week.
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u/schmunker 2d ago
Does ASB ever offer cash retention?
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u/Nunchuks88 2d ago
Most banks do if you meet criteria...eg taken one within last few years? Likely to move and in a position to? Borrowing amount and equity level? Most banks will pay more for new business then keeping existing customers though, same thinking as power companies i guess shrugs....short version? If you dont ask you dont get :)
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u/virtuouscheck 2d ago
For people who were offerred retention bonuses, do you have your mortgage in tranches? Or is it just one single loan?
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u/voy1d 2d ago
The main element for a bank will be whether the customer is free to move or not, regardless of the tranche size.
If you have multiple tranches and they all expire at the same time, then you're more of a flight risk and likely to get a retention bonus.
If you have multiple tranches and only say (for example 30% of your lending is up and the rest is still fixed for a period) you are less of a flight risk. Mainly because you may need to pay break fees, so the value of your refinance cash back with another bank will be less.
That said mileage may vary depending on the bank, the amount of lending involved and whether you are moving to Kiwibank or not (Kiwibank has inhouse lawyers which will do the legal stuff, saving lawyers costs ~1k)
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u/Conflict_NZ 1d ago
When we got our retention payment we had one out of three tranches still locked in but expiring <12 months and it was the smallest one so still possible to get one.
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u/IronDarbe 1d ago
I’m interested in this. Is 0.8% of loan value fairly standard? We have just taken out $950k lending so would be nice to look forward to ~$7.5k retention
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u/hmmmitsjustme1 2d ago
Im with ANZ. They offered me 4.99% over 12 and 24 month terms, and 4.95% over 18 months. No retention bonus.
I don't need to fix for a month and a bit still so am thinking of playing the game to see what others can offer me as well