About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds Other Sites:   depositrates.co.nz  |   landlords.co.nz
Last Article Uploaded: Thursday, September 29th, 1:20PM
Mortgage Rates Daily Commentary
Thursday 29 September 2016  Add your comment
One and two year fixed rates preferred

ANZ economists have reiterated their view that one and two year fixed rate home loans offer the best value at the moment.

Rates on on longer-term home loans have remained unchanged despite a mild rise in wholesale interest rates. Although the latter might ordinarily flag a lift in fixed mortgage rates, the Reserve Bank’s reiteration that the OCR will likely go lower in November should cap wholesale rates and keep a lid on term mortgage rates.

"With little on the visible horizon to drive global interest rates markedly higher and the RBNZ flagging rates being low for quite a period, we prefer to target low cost 1-2 year fixed rates," they say.

rss
Latest Headlines

Lower rates still likely

Which way are mortgage interest rates heading? We summarise what's been happening and round up the latest predictions.

Thursday, March 22nd 2001, 11:14AM

by Paul McBeth

Which way are mortgage interest rates heading? We summarise what's been happening and round up the latest predictions.

 

  • As we reported, the Reserve Bank chopped the Official Cash Rate last week by 0.25 percentage points to 6.25 per cent.
  • That's prompted a range of cuts, mainly to floating and short-term fixed rate mortgages. Here's what's been happening over recent weeks (rates for the four big banks for ease of comparison

 

Date

Floating rate

One year fixed

Three year

Five year

Today

8.25 %

6.85-6.99%

7.1-7.3%

7.4-7.5%

Two weeks ago

8.50%*

6.99%

7.3-7.5%

7.5-7.75%

Six weeks ago

8.50%*

6.99-7.25%

7.3%

7.5%

 

*except for WestpacTrust, which took a stand on 8.25%

 

  • BNZ economists say the market's now looking towards another OCR cut of 0.5 per cent, probably at the May 16 review. The bank's latest weekly review says that "if things pan out internationally as we think they will", monetary policy will be tightened again over 2002.
  • They also say the risk/reward trade-off has moved in favour of average, risk-averse borrowers fixing rates for two or three years.
  • Meanwhile, ASB Bank's tipping a 0.75 per cent cut in the OCR over the next four or five months. However, beyond that, they say there's likely to be a sharper focus on inflation (both here and overseas), so again, monetary policy tightening.
  • What does that mean for mortgage rates? Well, floating and short-term fixed rates (usually one to three years fixed) follow the OCR, so some reductions still possible before monetary policy cranks up again later this year.
  • Longer-term rates (say the five-year fixed rates) are likely to ease too, but not for long. ASB Bank says the most likely scenario is for these longer rates to match US bond moves, which probably means trending downward over the next few weeks.

 

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

« "Surprisingly positive" figures for housingHope for housing market »

Special Offers

Commenting is closed

 

print

Printable version  

print

Email to a friend
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
ANZ 5.59 4.75 4.79 4.99
ANZ Special - 4.25 4.29 -
ASB Bank 5.55 4.69 4.75 4.89
ASB Bank Special - 4.25 4.29 4.34
BankDirect 5.55 4.69 4.75 4.89
BankDirect Special - 4.25 4.29 4.34
BNZ - Mortgage One 6.25 - - -
BNZ - Rapid Repay 5.70 - - -
BNZ - Special - 4.29 4.29 4.49
BNZ - Std, FlyBuys 5.64 4.85 4.89 4.99
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 6.10 6.45 6.69 7.10
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 5.55 4.69 4.75 4.89
HSBC Premier 5.75 4.19 4.19 4.49
HSBC Premier LVR > 80% - - - -
Lender Flt 1yr 2yr 3yr
HSBC Special - - 3.79 -
ICBC 5.60 4.39 4.69 4.99
Kiwibank 5.25 4.70 4.75 4.29
Kiwibank - Capped - - - -
Kiwibank - Offset 5.25 - - -
Kiwibank Special - 4.19 4.19 -
Liberty 5.69 - - -
Napier Building Society 6.50 5.80 6.70 -
Nelson Building Society 6.10 4.85 4.99 -
NZ Home Loans 5.45 4.69 4.75 4.75
NZ Home Loans - Specials - - - -
Lender Flt 1yr 2yr 3yr
NZ Home Loans - Specials - 4.19 4.19 4.29
Perpetual Trust 7.70 - - -
Resimac 5.19 4.94 4.90 4.91
SBS Bank 5.54 4.75 4.89 4.99
SBS Bank Special - 4.25 4.15 4.55
Sovereign 5.65 4.69 4.75 4.89
Sovereign Special - 4.25 4.29 4.34
The Co-operative Bank 5.45 4.25 4.35 4.49
TSB Bank 5.54 4.75 4.75 4.99
TSB Special - 4.25 4.19 4.59
Wairarapa Building Society 6.20 5.75 5.95 -
Lender Flt 1yr 2yr 3yr
Westpac 5.65 4.79 4.85 4.99
Westpac - Capped rates - 5.15 5.25 -
Westpac - Offset 5.65 - - -
Westpac Special - 4.25 4.29 4.49
Median 5.65 4.69 4.75 4.89

Last updated: 26 September 2016 9:58am

Previous News

MORE NEWS»

News Bites
Compare Mortgage Rates
Compare
From
To
For

To graph multiple lenders, hold down Ctrl key while clicking in list box

Also compare rates to OCR
Find a Mortgage Broker

Add your company

Use map
About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox
 
Site by Web Developer and eyelovedesign.com