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Speaker 1: If you have a mortgage and you've been waiting and

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Speaker 1: waiting for your bank to pass on last week's fifty

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Speaker 1: basis point cut to the OCR, you might be waiting

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Speaker 1: for a while. Banks have all cut their floating rates,

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Speaker 1: but the term rates haven't really moved much since last week.

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Speaker 1: Bruce Patten is a mortgage advisor with US This evening

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Speaker 1: killed up.

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Speaker 2: Hi there, how are you?

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Speaker 1: Yeah? Well, thanks, So the OCR has been cut by

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Speaker 1: fifty basis points. Why haven't all mortgage rates been cut

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Speaker 1: by the same amount.

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Speaker 2: Well, you'll have seen that all the floating rates will

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Speaker 2: have probably almost all come down by now, a lot

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Speaker 2: of the fixed rates. It's not the OCR doesn't directly

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Speaker 2: relate to just them that there's people money on tom deposit.

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Speaker 2: You've got their swap rates for the overseas wholesale market.

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Speaker 2: And the other big fact at this time was that

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Speaker 2: everybody had fully priced in that we were going to

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Speaker 2: get fifty basis points, whereas the last two cuts it

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Speaker 2: was what are we going to get? Are we going

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Speaker 2: to get one? How much is it going to be?

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Speaker 2: So the market didn't really know this time. They knew

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Speaker 2: we're getting fifty maybe seventy five, So We saw a

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Speaker 2: few banks move a few days before we saw the

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Speaker 2: ben Z come down from six point four nine to

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Speaker 2: five nine nine on the Monday before the OCR was

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Speaker 2: even announced. Yeah, so a lot of the rates had

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Speaker 2: already moved.

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Speaker 1: Yeah, there was a bit of movement heading up to

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Speaker 1: the announcement itself. Does that mean that when it comes

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Speaker 1: to those fixed term rates we're unlikely to see more

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Speaker 1: movement until we get closer to February's next cut?

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Speaker 2: That's right. I think that's probably it for Christmas. You

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Speaker 2: might get lucky, some bank might decide they're going to

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Speaker 2: bring out a little special but I would say not,

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Speaker 2: because what you've got to remember is rates were over

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Speaker 2: seven only in August and we're now right down to

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Speaker 2: less than five and mid five in some cases. So

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Speaker 2: you know we've had what one point twenty five off

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Speaker 2: the OCR. Well, we've already had at least one point

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Speaker 2: twenty five off the fixed rates. So that says to me,

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Speaker 2: we've got all we're going to get.

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Speaker 1: What are people fixing for right now?

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Speaker 2: Mostly short term six or twelve months. If I was

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Speaker 2: to give anyone any advice, it would be just be

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Speaker 2: careful about fixing too long, because once everybody starts to

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Speaker 2: jump into those two three five year fixed rates, you

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Speaker 2: might see them start to go back up a bit

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Speaker 2: because at the moment no one's using them, so the

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Speaker 2: banks really aren't doing anything with it. So my advice is,

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Speaker 2: don't leave it too long. If you can afford. If

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Speaker 2: we see a rate at say five or four nine nine,

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Speaker 2: if we were lucky and you can afford that, take it,

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Speaker 2: then don't try to wait for another one point one

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Speaker 2: point two. Fix it when it's affordable for you.

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Speaker 1: Yeah. How competitive are the banks right now?

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Speaker 2: Well, like, well, they're a bit like petul companies, right.

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Speaker 2: They tend to feel allow one another quite quite closely.

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Speaker 2: And you've got to remember they're all sourcing their money

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Speaker 2: from the same place as well, so that it costs

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Speaker 2: them the same wherever. So when they're giving a special,

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Speaker 2: they're generally taking a bit of a hit, so they

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Speaker 2: don't tend to stay around for very long. So ain

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Speaker 2: z one year at five five nine, not long before

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Speaker 2: the official cash rate. But then they did away with

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Speaker 2: it because I think they saw that maybe the rate

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Speaker 2: wasn't going to be cut by point seventy five, so

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Speaker 2: they thought, well, we better get rid of it. Because

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Speaker 2: it's costing us money. So yeah, so sometimes they will

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Speaker 2: when they're trying to attract new business, and other times

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Speaker 2: they're out of the market, but generally they're all much

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Speaker 2: of a muchness to be honest.

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Speaker 1: Yeah, all right, thanks Bruce, appreciate it. That is Bruce Patten,

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Speaker 1: mortgage advisor. For more from Hither Duplessy Allen Drive, listen

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Speaker 1: live to news talks. It'd be from four pm weekdays,

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