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Mortgages

Mortgage Rates Daily Commentary
Thursday 11 July 2024  Add your comment
One bank cuts home loan rates

Westpac has cut three of its home loan terms between 10 and 25 basis points.

The biggest cut is to its one-year rate which is down to 6.89% and 7.49% for its Special and Standard rates respectively.

To see how it stacks up against other lenders check our table here where we have sorted on lowest to highest one-year rate.

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KPMG survey positive for financial sector

The mortgage market will continue to be intensely competitive this year but interest margins should remain stable, says KPMG's latest survey.

Tuesday, May 4th 1999, 12:00AM

by Paul McBeth

The mortgage market will continue to be intensely competitive this year but interest margins are likely to remain stable, according to the latest survey of KPMG's New Zealand financial institutions' performance.
In launching the 13th annual survey, Chairman of KPMG's Banking and Finance Group Andrew Dinsdale said that given improving business confidence, a stable interest rate environment and a relatively stable currency, "we consider there will be continued growth in lending and higher levels of profitability this year".
It's good news for the customer too, as KPMG believes that interest margins will continue to be squeezed as non-banks compete with the registered banks for business. In fact, the weighted average interest margin last year was the lowest the survey has tracked yet, falling from 2.76% in 1997 to 2.58% and showing the highly competitive nature of this market.
Other related findings:
  • The non-bank sector of the mortgage market expanded last year, thanks to the entry of Australian securitisation firms, increased 'legitimacy' (with Sovereign and AMP/Ergo having been established two years) and more customer acceptance of mortgage brokers.
  • Mortgage brokers originated some 17% of mortgages during 1998, well up on the estimated 7% in 1996. Although the industry is growing considerably in New Zealand, the use of brokers is still low by Australian and United States standards (30% and 50% of mortgage originations respectively).
  • KPMG says brokers have become attractive to customers who are disillusioned with their banks and a trend is also developing for brokers to have a significant influence on where customers take their business. Meanwhile, some banks that have traditionally shunned mortgage brokers are now paying commission and entering into alliances with them.
  • Customer relations also came under the spotlight, with KPMG saying that for many customers, their relationship with their financial institution is "tenuous, based more on apathy and inertia than on loyalty". KPMG says as customers are increasingly willing to switch providers, financial institutions will have to deliver a much higher level of satisfaction to retain them.
  • Many borrowers repaid their fixed interest loans early, thanks to a sharp fall in interest rates from the second half of 1998. KPMG says the repayment penalties should boost fee income for institutions in the short term "but result in significant income losses in the next few years".
KPMG also commented on the number of mergers and acquisitions in the financial industry and said the market in which banks compete has become the financial services sector rather than the banking sector. However, further rationalisation will depend on events outside New Zealand, in particular the Australian regulatory environment.
The survey ranks banks according to eight criteria, which include financial performance and efficiency. Of the major banks, WestpacTrust moved into first place in this year's survey ahead of BNZ and ASB Bank. As a sector, the registered banks improved profitability 17.8%.

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
AIA - Back My Build 6.19 - - -
AIA - Go Home Loans 8.74 7.14 6.75 6.39
ANZ 8.64 7.74 7.39 7.25
ANZ Blueprint to Build 7.39 - - -
ANZ Good Energy - - - 1.00
ANZ Special - 7.14 6.79 6.65
ASB Bank 8.64 7.14 6.75 6.39
ASB Better Homes Top Up - - - 1.00
Avanti Finance 9.15 - - -
Basecorp Finance 9.60 - - -
Bluestone 9.24 - - -
Lender Flt 1yr 2yr 3yr
BNZ - Classic - 7.14 6.79 6.65
BNZ - Green Home Loan top-ups - - - 1.00
BNZ - Mortgage One 8.69 - - -
BNZ - Rapid Repay 8.69 - - -
BNZ - Std, FlyBuys 8.69 7.74 7.39 7.25
BNZ - TotalMoney 8.69 - - -
CFML Loans 9.45 - - -
China Construction Bank - 7.09 6.75 6.49
China Construction Bank Special - - - -
Co-operative Bank - First Home Special - 6.79 - -
Co-operative Bank - Owner Occ 8.40 6.99 6.79 6.65
Lender Flt 1yr 2yr 3yr
Co-operative Bank - Standard 8.40 7.49 7.29 7.15
Credit Union Auckland 7.70 - - -
First Credit Union Special - 7.45 7.35 -
First Credit Union Standard 8.50 7.99 7.85 -
Heartland Bank - Online 7.99 6.89 6.55 6.35
Heartland Bank - Reverse Mortgage - - - -
Heretaunga Building Society 8.90 7.60 7.40 -
HSBC Premier 8.59 - - -
HSBC Premier LVR > 80% - - - -
HSBC Special - - - -
ICBC 7.85 7.05 6.69 6.59
Lender Flt 1yr 2yr 3yr
Kainga Ora 8.64 7.74 7.35 6.99
Kainga Ora - First Home Buyer Special - - - -
Kiwibank 8.50 7.99 7.79 7.55
Kiwibank - Offset 8.50 - - -
Kiwibank Special - 6.99 6.79 6.65
Liberty 8.59 8.69 8.79 8.94
Nelson Building Society 9.00 7.65 7.25 -
Pepper Money Advantage 10.49 - - -
Pepper Money Easy 8.69 - - -
Pepper Money Essential 8.29 - - -
SBS Bank 8.74 7.74 7.09 6.95
Lender Flt 1yr 2yr 3yr
SBS Bank Special - 7.14 6.49 6.35
SBS Construction lending for FHB - - - -
SBS FirstHome Combo 6.19 6.14 - -
SBS FirstHome Combo - - - -
SBS Unwind reverse equity 9.95 - - -
Select Home Loans 9.24 - - -
TSB Bank 9.44 7.79 7.55 7.45
TSB Special 8.64 6.99 6.75 6.65
Unity 8.64 6.99 6.79 -
Unity First Home Buyer special - 6.55 6.45 -
Wairarapa Building Society 8.60 6.95 6.85 -
Lender Flt 1yr 2yr 3yr
Westpac 8.64 ▼7.49 7.35 6.99
Westpac Choices Everyday 8.74 - - -
Westpac Offset 8.64 - - -
Westpac Special - ▼6.89 6.75 6.39
Median 8.64 7.14 6.82 6.65

Last updated: 11 July 2024 1:26pm

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