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Mortgage Rates Daily Commentary
Monday 1 September 2014  Add your comment
TSB picks on two-year rate

TSB has taken a market leading position in the two-year fixed rate market with a rate of 5.79%. In addition to this it is offering cash incentives and the chance to win a $20,000 house make-over. Of course terms and conditions apply.

To see how this rate compares we have sorted the table from lowest to highest two year rates here.

In the three-year space ASB and its associated lenders have a new 6.19% Special.

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Government review recommends tax on housing

A team reviewing the New Zealand tax system at the behest of the Labour-Alliance government is urging an annual tax on housing.

Thursday, June 21st 2001, 9:30AM

by Jenny Ruth

The team, chaired by Rob McLeod, managing partner at accountancy firm Arthur Andersen, is recommending the tax should be based on the net equity people have in their homes.

In an issues paper released today (20 June), it says if people invest in shares or a bank account they will be taxed on the dividends or interest they earn. But if they use the same money to buy a house to live in, the investment’s benefit, occupancy, is tax free.

"This tax concession for returns on savings that are taken in the form of owner occupancy alters the behaviour of New Zealand savers in favour of home ownership," the team says.

Housing investment accounts for more than 70% of total household savings compared with less than 50% of the average of all OECD countries, it says.

"Money goes into home ownership which might otherwise have been invested in assets that improve economic growth and lift the incomes of all New Zealanders."

Nevertheless, it acknowledges that the present concessionary treatment of home ownership "is a tradition that is deeply embedded in the psyche of all New Zealanders. Quite clearly, any proposal to change it will be highly controversial."

McLeod says the easiest thing for the team would have been "to simply drop this hot potato."

But the resulting distortions have "very important consequences" which should be more widely understood and debated by the public.

The team accepts that if housing were taxed, property values would fall "as buyers took account of the extra tax cost they would face."

It estimates that, at an average tax rate of 25%, a housing tax would generate revenue of $750 million and it suggests this should be used to reduce income tax.

The review team will now conduct a second round of consultations before presenting its final report to the government in October.

Finance minister Michael Cullen says the review team "delivered a tough-minded and radical analysis" but that the government won’t adopt any proposals for significant change without first seeking a mandate at the 2002 general election.

"The government has never indicated that we would expect to pick up all the review’s recommendations and has always hoped that all political parties will feel free to draw on the final report as a resource," Cullen says.
"Accordingly, I intend to refrain as much as possible from commenting on any of the specific issues the inquiry has raised. We need a broad discussion involving many voices."

« Improvement but no housing boom in sightPolies reject housing tax, real estate agents crow »

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Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AMP Home Loans 7.24 5.99 6.39 6.65
AMP Home Loans $200k+ 7.14 5.89 6.29 6.55
AMP Home Loans LVR <80% - - 5.85 6.29
ANZ 6.74 6.05 6.49 6.65
ANZ LVR > 90 6.74 6.55 6.99 7.15
ANZ Special - - 5.99 -
ASB Bank 6.75 6.09 6.40 6.65
ASB Bank Special - - 5.99 6.19
BankDirect 6.75 6.09 6.99 6.65
BankDirect Special - - 5.99 6.19
BNZ - Classic - - 5.99 ▼6.19
Lender Flt 1yr 2yr 3yr
BNZ - GlobalPlus 6.74 5.99 6.39 6.59
BNZ - Mortgage One 7.15 - - -
BNZ - Rapid Repay 6.74 - - -
BNZ - Std, FlyBuys 6.74 5.99 6.39 6.59
BNZ - TotalMoney 6.74 - - -
Credit Union Auckland 6.70 - - -
Credit Union Baywide 6.45 5.90 6.50 -
Credit Union North 6.45 - - -
Credit Union South 5.75 - - -
eMortgage 6.04 6.15 6.69 7.19
Finance Direct 6.10 6.45 6.69 7.10
Lender Flt 1yr 2yr 3yr
First Credit Union 6.45 - - -
General Finance 5.95 6.25 6.50 7.10
HBS Bank 6.15 5.85 5.99 6.25
HBS Special - - - 5.95
Heartland 6.45 6.75 7.00 7.60
Heretaunga Building Society ▲6.70 ▲6.00 6.50 -
Housing NZ Corp 6.74 5.99 6.19 6.60
HSBC Premier 6.84 5.95 5.95 6.55
HSBC Premier LVR > 80% - - - -
HSBC Special - - - -
ICBC 6.75 5.99 6.39 -
Lender Flt 1yr 2yr 3yr
Kiwibank ▲6.65 5.99 6.39 6.65
Kiwibank - Capped 5.65 6.50 - -
Kiwibank - Offset ▲6.55 - - -
Kiwibank LVR > 80% - - ▼5.89 -
Liberty 5.64 - - -
Napier Building Society 5.80 6.00 6.70 -
Nelson Building Society 6.95 6.15 6.60 -
NZ Home Loans 6.85 6.09 6.40 6.65
Perpetual Trust 7.70 - - -
RESIMAC LVR < 80% 6.59 6.35 6.58 6.77
RESIMAC LVR < 85% - - - -
Lender Flt 1yr 2yr 3yr
RESIMAC LVR < 90% - - - -
RESIMAC LW DOC - - - -
SBS Bank 6.15 5.85 5.99 6.25
SBS Bank Special - - - 5.95
Silver Fern 5.95 6.10 6.55 7.05
Sovereign 6.85 6.09 6.40 6.65
Sovereign Special - - - 6.19
The Co-operative Bank 6.70 6.00 6.00 6.25
TSB Bank 6.74 6.00 6.19 6.60
TSB Special - - ▼5.79 -
Wairarapa Building Society 6.20 5.75 5.95 -
Lender Flt 1yr 2yr 3yr
Westpac 6.59 6.09 6.39 6.65
Westpac - Capped rates - 6.74 6.99 -
Westpac - Offset 6.59 - - -
Westpac Special - - 5.99 6.19
Median 6.70 6.03 6.39 6.60

Last updated: 1 September 2014 9:03am

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