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Last Article Uploaded: Thursday, September 29th, 12:48PM
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.

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Home affordability

Housing sales activity remains subdued. A Massey University survey compares the afforability of home ownership in the different regions.

Thursday, May 10th 2001, 2:58PM

by Jenny Ruth

While home affordability in New Zealand improved in the March quarter for the second successive quarter, buying a home remains distinctly less affordable than it was in the March quarter last year. That's according to AMP Banking's home affordability survey conducted by Massey University.

Home affordability in New Zealand improved 2.3% on average in the March quarter and is expected to improve further this quarter as interest rates continue to decline. But it's still 10.1% worse than in the March quarter
last year.

The survey found declining mortgage rates, a 0.3% decline in the median house price and a 1.4% rise in average weekly wages all contributed to the improvement in the latest quarter.

However, the median house price appeared to be the major determinant. While the national median house price fell from $174,000 to $173,500 over the quarter, house prices fell in five regions and rose in 12. Affordability
increased in the regions where house prices fell and decreased in the regions where house prices rose.

On an annual basis, all regions experienced a decline in home affordability and in nine of the 11 regions the median house rose over the year. The two regions in which house prices didn't rise, Taranaki and Southland,
experienced the smallest declines in home affordability.

Perhaps that explains why housing sales activity remains subdued. Massey quotes Real Estate Institute figures showing housing sales were down 18.5% at 64,779 year on year.

The regions which experienced a quarterly improvement in affordability were Taranaki, up 7%, Wellington, up 5.4%, Hawkes Bay, up 3.8%, Northland, up 2.7% and Nelson, up 0.6%. Affordability fell 4.8% in Southland in the
quarter and 3.6% in Otago and the declines in the rest of the country were all less than 1%.

In the year, affordability fell most in Northland, down 32.9%, and Otago, down 16.5%, and fell least in Taranaki, down 0.5%.

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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

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