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Last Article Uploaded: Tuesday, January 24th, 1:50PM
Mortgage Rates Daily Commentary
Monday 23 January 2017  Add your comment
A pleasant surprise

While everyone is busy raising mortgage rates one bank has done the opposite. SBS has lowered its one-year rate to 4.19% which makes it the lowest standard rate on offer in the market at the moment. HSBC sits alongside it here, however it has more conditions on its offer.

To see how the battle for short-term rates stacks up click here.

While SBS did lower a rate it also raised some of its longer ones.

Also moving today is Sovereign which has increased its variable rate as well as six months, one year and 18 month rates.

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Rush on rates

There's been a rush to lower mortgage rates over the last couple of days, following the Reserve Bank's decision to cut the Official Cash Rate.

Thursday, March 15th 2001, 2:29PM

by Paul McBeth

There's been a rush to lower mortgage rates over the last couple of days, following the Reserve Bank's decision to cut the Official Cash Rate.

WestpacTrust, which had already dropped its floating mortgage rate to 8.25 per cent well in advance of the OCR move, has just shaved all its fixed rate mortgages by as much as 0.25 per cent. It's also offering a special nine-month rate of just 6.85 per cent.

Non-bank lender Cairns Lockie was another to prune its rates, reducing its floating mortgage by 25 basis points to 8.0 per cent. Director James Lockie said this was the first time floating rates had been at eight per cent or below since the middle of last year.

Meanwhile, the other main banks were quick to move their floating rates down from 8.5 per cent to 8.25 per cent following the OCR announcement, trimming some fixed rates as well. Along with the OCR cut, lenders cited lower global wholesale interest rates, largely in response to the slowdown in the US economy (see our rates table for more details).

The OCR, which dropped from 6.50 per cent to 6.25 per cent on Wednesday, had actually remained unchanged since May last year. This was also its first-ever reduction since being introduced in March 1999, at 4.50 per cent.

Looking ahead for floating and short-term fixed mortgage rates, they could well be close to their lows by now. Deutsche Bank says that the market is pricing in further OCR cuts of a total 0.50 per cent at the April and May reviews, "implicitly expecting a significant further deterioration in the global outlook relative to RBN assumptions". However, Deutsche Bank economists aren't so sure and say that, while global developments will be the key factor driving further rate decisions, domestic data and their implication for our inflation outlook shouldn't be underestimated.

Paul is a staff writer for Good Returns based in Wellington.

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Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
ANZ ▲5.69 ▲4.95 ▲5.25 ▲5.49
ANZ Special - ▲4.45 ▲4.75 -
ASB Bank ▲5.80 ▲4.99 5.19 5.49
ASB Bank Special - ▲4.59 4.79 5.09
BankDirect ▲5.80 ▲4.99 5.19 5.49
BankDirect Special - ▲4.59 4.79 5.09
BNZ - Mortgage One 6.25 - - -
BNZ - Rapid Repay 5.70 - - -
BNZ - Special - 4.49 4.79 5.09
BNZ - Std, FlyBuys 5.79 4.89 5.19 5.49
BNZ - TotalMoney 5.64 - - -
Lender Flt 1yr 2yr 3yr
Credit Union Auckland 6.70 - - -
Credit Union Baywide 5.95 4.99 4.99 -
Credit Union North 6.45 - - -
Credit Union South 6.45 - - -
Finance Direct - - - -
First Credit Union 5.85 - - -
Heartland 6.70 7.00 7.25 7.85
Heretaunga Building Society 5.60 4.85 4.90 -
Housing NZ Corp 5.59 ▲4.75 ▲4.90 ▲5.20
HSBC Premier 5.59 4.19 4.39 4.69
HSBC Premier LVR > 80% - - - -
Lender Flt 1yr 2yr 3yr
HSBC Special - - - -
ICBC 5.60 4.39 4.69 4.99
Kiwibank 5.40 4.80 ▲5.05 ▲5.35
Kiwibank - Capped - - - -
Kiwibank - Offset 5.40 - - -
Kiwibank Special - 4.35 ▲4.65 ▲5.05
Liberty 5.69 - - -
Napier Building Society - - - -
Nelson Building Society 6.10 4.99 5.25 -
NZ Home Loans 5.65 4.80 ▲5.05 ▲5.35
NZ Home Loans - Specials - - - -
Lender Flt 1yr 2yr 3yr
NZ Home Loans - Specials - 4.35 ▲4.65 ▲5.05
Perpetual Trust 7.70 - - -
Resimac 5.30 4.86 4.94 5.15
SBS Bank 5.54 4.75 4.95 5.29
SBS Bank Special - ▼4.19 ▲4.54 ▲4.95
Sovereign ▲5.90 ▲4.99 5.19 5.49
Sovereign Special - ▲4.59 4.79 5.09
The Co-operative Bank - Owner Occ ▲5.55 ▲4.45 ▲4.75 ▲5.05
The Co-operative Bank - Standard ▲5.55 ▲4.95 ▲5.25 ▲5.55
TSB Bank 5.54 4.75 4.79 4.99
TSB Special - 4.25 4.49 4.69
Lender Flt 1yr 2yr 3yr
Wairarapa Building Society 5.70 4.85 4.99 -
Westpac 5.65 4.89 5.19 5.49
Westpac - Capped rates - 5.15 5.25 -
Westpac - Offset 5.65 - - -
Westpac Special - 4.49 4.79 5.09
Median 5.69 4.78 4.92 5.12

Last updated: 24 January 2017 9:42am

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