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Mortgages

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Homes become more affordable

Home affordability increases for the first time in 12 months.

Wednesday, January 17th 2001, 6:38AM
New Zealand home affordability improved by 0.4 percent over the December 2000 quarter as a drop in fixed interest rates offset a slight rise in the median dwelling price, according to the latest AMP Banking Home Affordability survey.

The small improvement in the New Zealand index was the first recorded in over 12 months. The New Zealand median dwelling price lifted 2% over the quarter, increasing from $170,000 to $174,000. The Real Estate Institute has reported an increase in dwelling sales during November, following the lows recorded during September/October. Dwelling sales volumes were 18% down for the year 2000, at 65,491 compared to 80,098 for 1999.

AMP Banking Marketing Manager, Karen Clough said the news is good for potential home owners. "The combination of improved affordability and the current lowering of mortgage interest rates makes it an opportune time for people to buy a property or renew their mortgage."

Five regions reported a quarterly improvement in home affordability. Otago recorded the highest improvement (6.7%) followed by Hawke's Bay (4.2%), Waikato/Bay of Plenty (2.2%), Canterbury/Westland (1%) and Auckland (0.8%).

Six regions out of the 11 regions surveyed recorded quarterly affordability declines. Taranaki showed the steepest decline (13.8%) followed by Manawatu/Wanganui (13.5%) and Northland (12.2%). The smallest quarterly declines were reported by Wellington (0.8%) followed by Southland (4.3%) and Nelson (5%). Median dwelling prices lifted over the quarter in all regions except for Hawke's Bay, Otago and Southland, each of which recorded a fall.

The December index for New Zealand reflected a home affordability decline of 27.1% over the past 12 months. Declines in home affordability were reported for all regions. Northland recorded the steepest twelve monthly decline (43.6%) followed by Wellington (41.7%), and Taranaki (33.6%).

Wellington's median dwelling price continued an upward trend already evident over the past year. Seven of the 11 regions recorded a lift in median dwelling prices over the past 12 months. Exceptions were Waikato/Bay of Plenty, Canterbury/Westland, Otago and Southland. The smallest twelve monthly home affordability declines were recorded by Waikato (20.5%) followed by Southland (21.3%) and Auckland (25.7%).

Graham Crews, Senior Lecturer in Real Estate at Massey University said, "The significant driver in twelve monthly home affordability decline has been the increase in interest rates over the period. Home buyers will welcome the softening trend which is now evident in interest rates."

Percentage Change in Mortgage Affordability in the last quarter
Percentage Change in Mortgage Affordability in the last 12 months
Region
Improvement
Decline
Improvement
Decline
Northland
-
12.2%
-
43.6%
Auckland
0.8%
-
-
25.7%
Waikato/Bay of Plenty/ Gisborne
2.2%
-
-
20.5%
Hawke's Bay
4.2%
-
-
27.7%
Manawatu/Wanganui
-
13.5%
-
28.8%
Taranaki
-
13.8%
-
33.6%
Wellington
-
0.8%
-
41.7%
Nelson
-
5.0%
-
26.5%
Canterbury/Westland
1.0%
-
-
27.3%
Otago
6.7%
-
-
27.1%
Southland
-
4.3%
-
21.3%
New Zealand
0.4%
-
-
27.1%
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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 7.45 7.05 6.85
ANZ 8.64 7.99 7.49 7.35
ANZ Blueprint to Build 7.39 - - -
ANZ Good Energy - - - 1.00
ANZ Special - 7.39 6.89 6.75
ASB Bank 8.64 7.39 6.89 6.65
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 - ▼7.29 ▼6.85 ▼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 7.95 7.65 7.45
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 - 7.15 - -
Co-operative Bank - Owner Occ 8.40 7.35 6.89 6.75
Lender Flt 1yr 2yr 3yr
Co-operative Bank - Standard 8.40 7.85 7.39 7.25
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 6.69 6.45 6.19
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 6.85 6.59
Lender Flt 1yr 2yr 3yr
Kainga Ora 8.64 7.79 7.59 7.29
Kainga Ora - First Home Buyer Special - - - -
Kiwibank 8.50 8.35 7.89 7.65
Kiwibank - Offset 8.50 - - -
Kiwibank Special - 7.35 6.89 6.75
Liberty 8.59 8.69 8.79 8.94
Nelson Building Society 9.00 7.90 7.39 -
Pepper Money Advantage 10.49 - - -
Pepper Money Easy 8.69 - - -
Pepper Money Essential 8.29 - - -
Resimac - LVR < 80% 8.84 8.30 7.89 7.69
Lender Flt 1yr 2yr 3yr
Resimac - LVR < 90% 9.84 9.30 8.89 8.69
Resimac - Specialist Clear (Alt Doc) - - 8.99 -
Resimac - Specialist Clear (Full Doc) - - 9.49 -
SBS Bank 8.74 7.95 7.45 7.29
SBS Bank Special - 7.45 6.95 6.79
SBS Construction lending for FHB - - - -
SBS FirstHome Combo 6.19 7.05 - -
SBS FirstHome Combo - - - -
SBS Unwind reverse equity 9.95 - - -
Select Home Loans 9.24 - - -
TSB Bank 9.44 8.19 7.55 7.55
Lender Flt 1yr 2yr 3yr
TSB Special 8.64 7.39 6.75 6.75
Unity 8.64 6.99 6.85 -
Unity First Home Buyer special - - 6.45 -
Wairarapa Building Society 8.60 7.15 6.85 -
Westpac 8.64 7.89 7.49 7.25
Westpac Choices Everyday 8.74 - - -
Westpac Offset 8.64 - - -
Westpac Special - 7.29 6.89 6.65
Median 8.64 7.45 7.37 6.77

Last updated: 23 February 2024 11:59am

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