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Mortgages

Mortgage Rates Daily Commentary
Monday 3 August 2020  Add your comment
BNZ slashes rates; Trouble in Queenstown

BNZ has slashed its 18 month home loan to 2.65% this morning, while its three year falls to 2.79%. Investors and owner-occupiers can access the same rates. View the latest rates here.

While interest rates continue to fall, there's cause for concern in the rental market. We look at how Covid has hit the Queenstown rental market: [READ ON]

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Advertising the key

Consumers' Institute boss David Russell gives his reasons why banks can take such fat margins on floating rate home loans.

Friday, August 30th 2002, 6:28AM

by Jenny Ruth

The reason the five major banks have been able to maintain such fat profit margins on their floating rate mortgages comes down to the power of advertising, says Consumers Institute chief executive David Russell.

That’s despite the many competitors offering significantly lower rates.

"The major advertising for mortgages comes from the banks. The only conclusion we can draw is that they’re doing very nicely," Russell says.

All five of the major banks have lowered their floating rates since the Reserve Bank left interest rates unchanged earlier this month, but their profit margins remain at the extreme upper limit of their usual 150 to 200 basis points above the 90-day bank bill rate.

Four of the five now have 7.85% floating rates and National Bank’s is 7.8% while the 90-day bank bills are trading at 5.87%. By contrast, the government’s Kiwibank’s floating rate is 6.95%.

Russell says the next magazine will contain the results of a large survey of customer satisfaction and will also include comments on bank fees, although not specifically related to mortgages.

« New apartments drive housing consents upCredit crunch looming »

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Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AIA 4.55 2.55 2.69 2.79
ANZ 4.44 3.15 3.25 3.39
ANZ Special - 2.55 2.69 2.79
ASB Bank 4.45 2.55 2.69 2.79
Bluestone 3.49 3.49 3.49 3.49
BNZ - Classic - 2.55 2.69 ▼2.79
BNZ - Mortgage One 5.15 - - -
BNZ - Rapid Repay 4.60 - - -
BNZ - Std, FlyBuys 4.55 ▼3.15 3.29 ▼3.39
BNZ - TotalMoney 4.55 - - -
CFML Loans 5.50 - - -
Lender Flt 1yr 2yr 3yr
China Construction Bank 4.49 4.70 4.80 4.95
China Construction Bank Special - 2.65 2.65 2.80
Credit Union Auckland 5.45 - - -
Credit Union Baywide 5.65 3.95 3.85 -
Credit Union South 5.65 3.95 3.85 -
First Credit Union Special 5.85 3.35 3.85 -
Heartland 3.95 2.89 2.97 3.39
Heartland Bank - Online - - - -
Heretaunga Building Society 4.99 4.35 4.45 -
HSBC Premier 4.49 2.45 2.60 2.65
HSBC Premier LVR > 80% - - - -
Lender Flt 1yr 2yr 3yr
HSBC Special - - - -
ICBC 3.69 2.55 2.65 2.79
Kainga Ora 4.43 3.29 3.39 3.85
Kiwibank 3.40 3.30 3.54 3.54
Kiwibank - Offset 3.40 - - -
Kiwibank Special 3.40 2.55 2.79 2.79
Liberty 5.69 - - -
Nelson Building Society 4.95 3.45 3.49 -
Pepper Essential 4.79 - - -
Resimac 3.49 3.45 3.39 3.69
SBS Bank 4.54 3.09 3.19 3.49
Lender Flt 1yr 2yr 3yr
SBS Bank Special - 2.59 2.69 2.99
The Co-operative Bank - Owner Occ 4.40 2.55 2.69 2.99
The Co-operative Bank - Standard 4.40 3.05 3.19 3.49
TSB Bank 5.34 3.35 3.49 3.79
TSB Special 4.54 2.55 2.69 2.99
Wairarapa Building Society 4.99 3.65 3.69 -
Westpac 4.59 4.15 4.09 4.49
Westpac - Offset 4.59 - - -
Westpac Special - 2.55 2.69 2.79
Median 4.55 3.12 3.22 3.19

Last updated: 31 July 2020 3:01pm

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